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  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
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  "notes": "The slide uses a red flag icon to highlight the contradiction between positive alignment and potential underlying business weakness.",
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      "text": "Spruce Point observes that in 2020 for the first time, Stryker included an executive bonus modifier related to Free Cash Flow. Generally, we view this as a positive for alignment with shareholders. However, we also view this as signal that the Board and management may be seeing future challenges with Free Cash Flow generation, and are preemptively focusing management on addressing the issue.",
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      "kind": "paragraph",
      "text": "Annual Bonus: Individually structured short-term bonus plans under our Executive Bonus Plan are intended to motivate and reward our NEOs for achieving and exceeding specific annual performance goals. The primary focus of the 2020 bonus goals that were established in February 2020 for our NEOs was total Stryker performance. For 2020, each NEO's bonus plan designated a threshold level of performance for each measure that had to be achieved before any bonus could begin to be earned for that measure. Each 2020 bonus plan included an opportunity to earn an overachievement bonus of up to an additional 100% of target bonus, which is included in the \"Maximum Bonus Opportunity\" column in the table below, if 2020 goals for sales on a constant currency basis, adjusted operating income and adjusted diluted net earnings per share were achieved. In addition, free cash flow performance was included as a potential downward modifier to the total bonus payout in each NEO's bonus plan.",
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      "text": "Source: Stryker 2021 Proxy Statement",
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      "text": "Free Cash Flow Added To Annual Bonus",
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      "objective": "What are the consequences of not addressing Stryker's issues?",
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