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  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2022-04-06 00:00:00",
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  "notes": "The slide uses a red callout box to highlight the contradiction between stated functional goals and actual performance outcomes.",
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      "kind": "callout",
      "text": "Spruce Point takes extreme issue with the Compensation Committee's decision to award management 75% payout for 2020 targets. Granted COVID-19 threw a curveball to the overall business, but management was still rewarded for things we believe they could control and objectively failed at. Notably, \"Functional goals\" included successful integration of acquisitions and leadership towards its cost transformation plan. However, through a former employee interview, we learned that Mobius Imaging and Cardan Robotics (largest 2019 acquisition acquired in Oct 2019) was struggling to integrate and ramp capacity. Furthermore, management abandoned its ERP project after spending millions and promising to see it to completion. Spruce Point believes this shows a clear misalignment of interests between shareholders and investors. Interestingly, Roch Doliveux Chair of the Compensation Committee did not stand for re-election at the 2021 Annual Meeting.",
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      "kind": "callout",
      "text": "Awarded 100% Credit For The 20% Weighting \"Functional Goals\" – But What Are They?",
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      "text": "\"Upward Adjustment\" Arbitrary 55% Credit?",
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      "text": "Functional Goals \"Successful Integration of Acquisitions\" \"Leading Multi-Year Cost Transformation Initiative\"",
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      "text": "Spruce Point believes this shows a clear misalignment of interests between shareholders and investors.",
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      "text": "bonus payout: 75%",
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      "text": "Source: Stryker 2021 Proxy Statement",
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      "text": "Functional Goal descriptions for NEOs.",
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      "text": "Bonus Plans for our NEOs table showing Threshold, Target, and Actual Performance metrics.",
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      "text": "Management Rewarded For Failures By The Board In 2020, Comp Chair Departs....",
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      "evidence": "Contrasts management's bonus payout with specific failures in acquisition integration and ERP projects.",
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