|
|
|
|
|
Filed by the Registrant x | ||||
Filed by a Party other than the Registrant £ | ||||
|
|
|
|
|
Check the appropriate box: | ||||
|
|
|
|
|
£ |
| Preliminary Proxy Statement | ||
£ |
| Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | ||
x |
| Definitive Proxy Statement | ||
£ |
| Definitive Additional Materials | ||
£ |
| Soliciting Material Pursuant to §240.14a-12 | ||
| ||||
| ||||
(Name of Registrant as Specified in Its Charter) | ||||
| ||||
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) | ||||
| ||||
Payment of Filing Fee (Check the appropriate box): | ||||
|
| |||
x |
| No fee required. | ||
£ |
| Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. | ||
|
|
| ||
|
| (1) |
| Title of each class of securities to which transaction applies: |
|
|
|
|
|
|
| (2) |
| Aggregate number of securities to which transaction applies: |
|
|
|
|
|
|
| (3) |
| Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
|
|
|
|
|
|
| (4) |
| Proposed maximum aggregate value of transaction: |
|
|
|
|
|
|
| (5) |
| Total fee paid: |
|
|
|
|
|
|
| |||
£ |
| Fee paid previously with preliminary materials. | ||
|
| |||
£ |
| Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. | ||
|
|
| ||
|
| (1) |
| Amount Previously Paid: |
|
|
|
|
|
|
| (2) |
| Form, Schedule or Registration Statement No.: |
|
|
|
|
|
|
| (3) |
| Filing Party: |
|
|
|
|
|
|
| (4) |
| Date Filed: |
|
| |
| Globus Medical, Inc. | |
| Valley Forge Business Center | |
| 2560 General Armistead Avenue | |
| Audubon, PA 19403 | |
|
|
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON JUNE 4, 2025
To the stockholders of Globus Medical, Inc.:
Notice is hereby given that the 2025 Annual Meeting of Stockholders of Globus Medical, Inc., a Delaware corporation (the “Company”), will be held on Wednesday, June 4, 2025 at 6:00 p.m., local time, at our corporate headquarters located at Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, Pennsylvania 19403.
The purposes of the Annual Meeting, as more fully described in the accompanying proxy statement, are:
Only stockholders of record at the close of business on April 14, 2025 may vote at the Annual Meeting or any adjournment or postponement thereof.
The Notice of Internet Availability of Proxy Materials is being mailed, and the attached Proxy Statement is being made available, to our stockholders beginning on or about April 25, 2025.
|
|
|
| By Order of the Board of Directors, |
|
|
| |
| Kelly G. Huller Executive Vice President, General Counsel and Corporate Secretary |
|
Your vote is important. Whether or not you plan to attend the Annual Meeting, please vote your shares promptly. To vote your shares, you can (1) use the Internet as described in the Notice of Internet Availability of Proxy Materials in the attached Proxy Statement and on your proxy card; (2) call the toll-free telephone number as described in the attached Proxy Statement and on your proxy card; or (3) complete, sign and date your proxy card and return your proxy card by mail.
Audubon, Pennsylvania
April 25, 2025
|
|
|
|
GENERAL INFORMATION | 1 |
PROPOSAL 1 ELECTION OF DIRECTORS | 5 |
PROPOSAL 2 APPROVAL OF AMENDMENT TO THE 2021 EQUITY INCENTIVE PLAN | 18 |
PROPOSAL 3 RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED | 20 |
PROPOSAL 4 ADVISORY VOTE ON COMPENSATION OF OUR NAMED EXECUTIVE | 22 |
PROPOSAL 5 ADVISORY VOTE ON THE FREQUENCY OF AN ADVISORY VOTE ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS (“Frequency Vote”) | 24 |
EXECUTIVE OFFICERS | 25 |
COMPENSATION DISCUSSION AND ANALYSIS | 26 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 53 |
TRANSACTIONS WITH RELATED PERSONS | 55 |
STOCKHOLDER PROPOSALS | 56 |
ELECTRONIC ACCESS TO PROXY MATERIALS AND ANNUAL REPORT | 57 |
HOUSEHOLDING OF PROXY MATERIALS | 57 |
OTHER MATTERS | 58 |
PROXY STATEMENT FOR THE |
We are providing these proxy materials in connection with the solicitation by the Board of Directors of Globus Medical, Inc., a Delaware corporation (the “Company,” “Globus,” “Globus Medical,” “our,” “we,” or “us”), of proxies to be voted at our 2025 Annual Meeting of Stockholders (the “Annual Meeting”) and at any adjournments or postponements thereof. The Annual Meeting will begin at 6:00 p.m., Eastern Time, on Wednesday, June 4, 2025 at our corporate headquarters located at 2560 General Armistead Avenue, Audubon, Pennsylvania 19403. The “proxy materials” include this Proxy Statement, our Annual Report for the year ended December 31, 2024 (including our annual report on Form 10-K) and, if you are receiving printed copies of the proxy materials by mail, the proxy card. We are making these proxy materials available to our stockholders electronically via the Internet beginning on April 25, 2025. Accordingly, we are mailing to our stockholders of record and beneficial owners a Notice of Internet Availability of Proxy Materials containing instructions on how to access the proxy materials via the Internet and how to vote online. As a result, you will not receive a paper copy of the proxy materials unless you request one. All stockholders are able to access the proxy materials on a website referred to in the Notice of Internet Availability of Proxy Materials and in this Proxy Statement, and to request to receive a set of the proxy materials by mail or electronically, in either case free of charge. If you would like to receive a paper or electronic copy of the proxy materials, you should follow the instructions for requesting such materials included in the Notice of Internet Availability of Proxy Materials.
Attendance at the Annual Meeting is limited to stockholders of record as of April 14, 2025, the record date for the Annual Meeting.
If your shares are held beneficially in the name of a bank, broker or other holder of record and you plan to attend the Annual Meeting, you must present proof of your ownership of Globus stock, such as a bank or brokerage account statement, as of the record date to be admitted to the Annual Meeting.
Stockholders also must present a form of personal identification in order to be admitted to the Annual Meeting.
No cameras, recording equipment or electronic devices will be permitted in the Annual Meeting.
Only holders of record of our Class A common stock and Class B common stock as of the close of business on April 14, 2025, the record date for the Annual Meeting, are entitled to notice of, and to vote at, the Annual Meeting or at any adjournment or postponement thereof. You are entitled to cast one vote for each share of our Class A common stock you own on the record date and 10 votes for each share of our Class B common stock you own on the record date. As of the
record date for the Annual Meeting, 112,924,100 shares of our Class A common stock and 22,430,097 shares of our Class B common stock were outstanding.
As permitted by the Securities and Exchange Commission (the “SEC”), we are making this Proxy Statement and our 2024 Annual Report available to our stockholders electronically via the Internet. In accordance with this e-proxy process, we are sending our stockholders of record and beneficial owners a Notice of Internet Availability of Proxy Materials containing instructions on how to access the attached Proxy Statement and our 2024 Annual Report via the Internet and how to vote online. The Notice of Internet Availability of Proxy Materials also contains instructions on how you can receive a paper copy of the proxy materials. If you elect to receive a paper copy of our proxy materials, our 2024 Annual Report will be mailed to you along with the Proxy Statement and a proxy card.
Your vote is important. Stockholders can vote via the Internet, by telephone, by mail, or in person by attending the Annual Meeting and voting by ballot as described below.
If you choose to vote via Internet, simply visit www.proxyvote.com and follow the steps outlined on the secure website.
If you choose to receive printed copies of the proxy materials, you may vote by simply marking your proxy card, dating and signing it, and returning it in the postage-paid envelope provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY, 11717.
If you choose to vote via telephone, call toll free 1-800-690-6903 using a touch-tone telephone and follow the instructions provided on the recorded message. If you hold shares beneficially, through a broker, brokerage firm, bank or other nominee, please refer to the instructions provided to you by such broker, brokerage firm, bank or other nominee regarding voting by telephone.
Voting via the Internet, by telephone or by mail will not limit your right to vote at the Annual Meeting if you decide to attend and vote in person. If your shares are held in the name of a bank, broker or other holder of record, you must obtain a legal proxy, executed in your favor, from the holder of record to be able to vote at the Annual Meeting. You should contact your bank or brokerage account representative to obtain a legal proxy.
If you vote via the Internet or by telephone, your vote must be received by 11:59 p.m., Eastern Time, on June 3, 2025.
All shares of common stock that have been properly voted or for which proxy cards have been properly executed and returned, and not revoked, will be voted at the Annual Meeting.
The presence of the holders of a majority of the voting power of the shares of common stock outstanding as of the record date and entitled to vote at the Annual Meeting, present in person or represented by proxy, is necessary to constitute a quorum.
Provided that a quorum is present, stockholders will vote on (1) four nominees for election as director, (2) the approval of an amendment to the 2021 Equity Incentive Plan, (3) the ratification of the appointment of Deloitte & Touche LLP as the Company’s registered public accounting firm, (4) the approval, on an advisory basis, of the compensation of our named executive officers, and (5) the approval, on an advisory basis, of the frequency of the approval, on an advisory basis, of the compensation of our named executive officers. Stockholders may also vote on such other business as may properly be brought before the meeting or any adjournment or postponement thereof.
For the proposals above, a “broker non-vote” will occur when a broker or other nominee does not have the discretionary authority to vote shares with respect to one or more of the proposals because the broker has not received voting instructions from the beneficial owner of such shares but the broker returns a proxy voting such shares on other proposals for which the broker does have authority to vote. We believe that brokers and other nominees have the authority to vote their customers’ shares on the ratification of the appointment of our independent registered public accounting firm, even if their customers do not instruct their brokers or nominees how to vote on these matters, and that brokers and nominees have no authority to vote their customers’ shares with respect to any other proposal unless instructed how to vote. Generally, broker non-votes will be counted for purposes of determining whether there is a quorum present at the Annual Meeting. The effect of broker non-votes on each other proposal is discussed below.
For proposal (1) above, you may vote “FOR” or “WITHHOLD” for each director. Directors will be elected by a plurality of the voting power of the shares present in person or represented by proxy at the Annual Meeting and entitled to vote on such proposal at the Annual Meeting. A vote of “WITHHOLD” with respect to this matter will not be voted for this matter but these shares will be counted for purposes of determining whether there is a quorum present at the Annual Meeting. Accordingly, a “WITHHOLD” vote will have no effect on the election of the nominees for director. Shares represented by a proxy as to which there is a broker non-vote for such proposal will have no effect on the outcome of such proposal.
For each of proposals (2), (3), and (4) above, you may vote “FOR,” “AGAINST” or “ABSTAIN.” The approval of the amendment to the 2021 Equity Incentive Plan, the ratification of our registered public accounting firm, and the approval of our executive compensation on an advisory basis will each require the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the Annual Meeting and entitled to vote on such proposal at the Annual Meeting. For proposal (5) on the frequency of the advisory vote to approve compensation, you may vote “1 YEAR,” “2 YEARS,” “3 YEARS,” or “ABSTAIN.” A vote of “ABSTAIN” with respect to any such proposal will not be voted with respect to that matter but these shares will be counted for purposes of determining whether there is a quorum present at the Annual Meeting and as shares that are entitled to vote on such proposal. Accordingly, abstentions will have the effect of a vote “AGAINST” the approval of the amendment to the 2021 Equity Incentive Plan, the ratification of the appointment of our independent registered accounting firm, and the approval, on an advisory basis, of the compensation to be paid to our named executive officers. Shares represented by a proxy as to which there is a broker non-vote will have no effect on the respective outcomes of the following proposals: (1) the proposal to approve the amendment to the 2021 Equity Incentive Plan, (2) the proposal to approve our executive compensation on an advisory basis and (3) the proposal to approve on an advisory basis the holding of future stockholder advisory votes on the compensation of our named executive officers. Because brokers and other nominees have the authority to vote their customers’ shares on the ratification of the appointment of our independent registered public accounting firm, we do not expect to receive any broker non-votes with respect to that proposal.
All shares of common stock for which proxies have been properly executed and delivered, and not revoked, will be voted at the Annual Meeting in accordance with your instructions. If you sign, date and return your proxy card but do not give voting instructions, the shares of common stock represented by that proxy will be voted in accordance with the Board’s recommendations as follows:
If other matters are properly presented at the Annual Meeting for consideration, the persons named on the proxy card will have the discretion to vote on those matters for you. At the date we began printing this Proxy Statement, no other matters had been raised for consideration at the Annual Meeting.
You can revoke your proxy at any time before it is voted at the Annual Meeting by:
•sending written notice of revocation to the Secretary of the Company;
•timely delivering a valid, later-dated proxy; or
•attending the Annual Meeting and voting in person. If your shares are held in the name of a bank, broker or other holder of record, you must obtain a legal proxy, executed in your favor from the holder of record, to be able to vote at the Annual Meeting.
The names of stockholders of record entitled to vote at the Annual Meeting will be available at the Annual Meeting and for ten days prior to the Annual Meeting for any purpose germane to the Annual Meeting, between the hours of 9:30 a.m. and 4:30 p.m., at our principal executive offices at Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, Pennsylvania 19403, by contacting Kelly G. Huller, the Corporate Secretary of the Company.
We will bear all expenses of this solicitation, including the cost of preparing and mailing this Proxy Statement. Pursuant to SEC rules, we are making this Proxy Statement and our 2024 Annual Report available to our stockholders electronically via the Internet. In addition to soliciting proxies by Internet and mail, proxies may be solicited by telephone, facsimile or personally by our directors, officers and employees. None of these directors, officers or employees will receive any additional or special compensation for this solicitation. We will, on request, reimburse banks, brokerage firms and other nominees for their expenses in sending proxy materials to their customers who are beneficial owners of our common stock and obtaining their voting instructions.
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to Be Held on June 4, 2025: This Proxy Statement, the proxy card and the Annual Report (including our annual report on Form 10-K) for the fiscal year ended December 31, 2024 are available at www.proxyvote.com.
Our Board of Directors currently consists of eleven members divided into three classes, as nearly equal in number as possible, with each director serving a three-year term and one class being elected at each year’s annual meeting of stockholders. At each annual meeting of stockholders, successors to the class of directors whose term expires at such meeting will be elected for a term of three years. Each director will serve until a successor is duly elected and qualified, or until the director’s earlier death, resignation or removal. There is no limit to the number of terms a director may serve.
Four of our directors are nominated for election this year. Each director to be elected and qualified at the Annual Meeting will hold office until the 2028 annual meeting of stockholders and will serve until his or her successor is duly elected and qualified, or until the director’s earlier death, resignation or removal. Each of the nominees listed below is currently a director. Each person nominated for election has agreed to serve if elected, and we have no reason to believe that any nominee will be unable to serve. If any nominee becomes unavailable or unable to serve as director before the Annual Meeting, the shares of common stock represented by executed proxies will be voted for the election of a substitute nominee proposed by our Board of Directors or, in the alternative, the Board of Directors may elect to reduce its size.
Our Board of Directors believes that each of our current directors, including those nominated for election this year, is highly qualified to serve as a member of our Board of Directors and each has contributed to the mix of skills, core competencies and qualifications of the Board of Directors. Our directors are highly experienced and have diverse backgrounds and skills, as well as extensive track records of success in what we believe are relevant positions. A number of our directors also have served as directors of Globus for many years, and we benefit from their knowledge of our history, operations and corporate philosophy.
The following table sets forth information concerning our directors as of April 1, 2025:
|
|
|
| |
Name | Age | Position and Committee Memberships | Term Expires | |
David C. Paul | 58 | Chairman of the Board of Directors and Executive Chairman; Compensation Committee Chair and Nominating and Corporate Governance Committee | 2025(1) | |
Daniel T. Scavilla | 60 | Director, President and Chief Executive Officer; Member of the Nominating and Corporate Governance Committee | 2026 | |
David D. Davidar | 59 | Director; Member of the Compensation Committee and Nominating and Corporate Governance Committee | 2027 | |
Daniel T. Lemaitre | 71 | Director; Member of the Compensation Committee and Audit Committee | 2025(1) | |
Ann D. Rhoads | 59 | Director; Audit Committee Chair and Member of the Nominating and Corporate Governance Committee | 2025(1) | |
James R. Tobin | 80 | Director, Nominating and Corporate Governance Committee Chair and Member of the Compensation Committee | 2027 | |
Stephen T. Zarrilli | 63 | Director, Member of the Audit Committee | 2027 | |
Robert A. Douglas | 65 | Director, Member of the Audit Committee | 2026 |
John A. DeFord, Ph.D. | 63 | Director; Member of the Nominating and Corporate Governance Committee | 2026 | |
Leslie V. Norwalk, Esq. | 59 | Director, Member of the Audit Committee | 2025(1) | |
Daniel J. Wolterman | 68 | Director; Member of the Compensation Committee | 2027 | |
(1)If the director nominees are elected at the Annual Meeting, their term will expire in 2028. |
The following is a brief biography of each nominee for director and a discussion of the relevant experiences, qualifications, attributes or skills of each nominee that, together with other relevant factors, led the Nominating and Corporate Governance Committee to recommend that person as a nominee for director as of the date of this Proxy Statement.
David C. Paul is the Chairman of the Board of Directors, having served in this role since the company’s inception in 2003, and is a member of the Compensation Committee and the Nominating and Corporate Governance Committee. Mr. Paul served as our Chief Executive Officer from our inception in 2003 until August 2017, when he transitioned into the role of Executive Chairman. Prior to founding Globus, Mr. Paul was employed at Synthes Holding AG (formerly Synthes-Stratec) (“Synthes”) in various positions. Mr. Paul served as Director of Product Development for Synthes in his last position, where he was responsible for product development and marketing functions. Prior to Synthes, Mr. Paul worked as a Research Engineer in biomaterials research at Temple University. Mr. Paul is named inventor on approximately 225 patents and published applications. Mr. Paul received a B.S. in mechanical engineering from the University of Madras, and an M.S. in computer integrated mechanical engineering systems from Temple University. Mr. Paul also serves on the board of directors of Free Flow Medical, an early-stage medical device company, and Cross Ventures, LLC, a real estate development company. Mr. Paul brings to our Board of Directors valuable perspective and experience as our founder, former Chief Executive Officer, current Executive Chairman and largest stockholder, as well as leadership skills, industry experience and knowledge, discipline and dedication to our mission that qualify him to serve as one of our directors.
Daniel T. Lemaitre has served on our Board of Directors since April 2011 and is a member of our Compensation Committee and Audit Committee. Mr. Lemaitre previously served as the CEO of BlueWind Medical, a neuromodulation company based in Israel, from January 2020 until September 2024 after serving as its Executive Chairman from September 2018 until January 2020. Mr. Lemaitre most recently served as the President and Chief Executive Officer of Direct Flow Medical. Previously, Mr. Lemaitre served as Chief Executive Officer of White Pine Medical, a venture-backed medical device start-up company, from June 2009 until May 2015. Prior to White Pine Medical, Mr. Lemaitre served as the President and Chief Executive Officer of CoreValve, a privately-held company focused on percutaneous aortic valve replacement, from April 2008 until its acquisition by Medtronic, Inc., a publicly-traded medical device company, in April 2009. From 2005 until March 2008, Mr. Lemaitre was a Senior Vice President at Medtronic, where he led the company’s strategic planning and corporate development. Prior to joining Medtronic, Mr. Lemaitre spent 28 years as an investment analyst in the medical device field. This included 18 years with SG Cowen, where he was a managing director and led the healthcare research team, and six years with Merrill Lynch. Mr. Lemaitre holds a B.A. in Economics from Bethany College and an M.B.A. from Bowling Green State University. Mr. Lemaitre previously served on numerous boards including CoreValve, Direct Flow, Mitralign, Endologix (Chair), Nitinol Development Corporation, and Bioventus (Chair). Mr. Lemaitre’s extensive business, managerial, executive and leadership experience in the medical device industry, as well as his recent experience as a director of a publicly traded medical device company bring to our Board of Directors a meaningful understanding of our business and industry and valuable skills related to strategic planning for a public company. These skills and experience, as well as his financial and accounting skills and expertise, qualify him to serve as one of our directors.
Ann D. Rhoads has served on our Board of Directors since July 2011 and is the Chairperson of our Audit Committee and a member of our Nominating and Corporate Governance Committee. Ms. Rhoads most recently served as the Chief
Financial Officer of Forty Seven, Inc. (NASDAQ: FTSV), a clinical-stage biotechnology company from March 2018 to April 2020. Previously, Ms. Rhoads was Executive Vice President and Chief Financial Officer of Zogenix, Inc. (NASDAQ: ZGNX), a pharmaceutical company, from March 2010 through January 2017. From 2000 through the end of 2009, Ms. Rhoads served as the Chief Financial Officer of Premier, Inc., a healthcare supply management company. Ms. Rhoads holds a B.S. in finance from the University of Arkansas and an M.B.A. from Harvard Business School. Ms. Rhoads also serves on the board of directors of Quidel Corporation (NASDAQ: QDEL), Repare Therapeutics (NASDAQ: RPTX), and iTeos Therapeutics (NASDAQ: ITOS). Ms. Rhoads’ experience as the chief financial officer of publicly traded biotechnology and pharmaceutical companies brings valuable financial skills and expertise to our Board of Directors that includes significant executive management experience and leadership skills, and a strong understanding of corporate governance principles, which qualifies her to serve as one of our directors.
Leslie V. Norwalk, Esq. has served as a member of our Board of Directors since September 2023. Ms. Norwalk previously served as a member of the board of directors of NuVasive from May 2014 to September 2023. Ms. Norwalk is currently strategic counsel to Epstein Becker & Green, EBG Advisors and National Health Advisors. She also serves as a healthcare, regulatory and policy advisor to several private equity firms. Ms. Norwalk previously served the Bush Administration as the acting administrator for the Centers for Medicare & Medicaid Services. She managed the day-to-day operations of Medicare, Medicaid, State Child Health Insurance Programs, Survey and Certification of Health Care Facilities and other federal health care initiatives. For the four years prior, she was the agency’s deputy administrator, responsible for the implementation of the hundreds of changes made under the Medicare Modernization Act, including the Medicare Prescription Drug Benefit. Prior to serving under the Bush Administration, she practiced law in the Washington, D.C. office of Epstein Becker & Green where she advised clients on a variety of health policy matters. She also served in the first Bush Administration in the White House Office of Presidential Personnel, and the Office of the U.S. Trade Representative. Ms. Norwalk serves as a director of Arvinas (NASDAQ: ARVN), ModivCare (NASDAQ: MODV) and Neurocrine Biosciences (NASDAQ: NBIX), as well as several privately held healthcare companies. She is a member of APCO Worldwide’s International Advisory Council. Ms. Norwalk earned a B.A., cum laude, in economics and international relations from Wellesley College and a J.D. from the George Mason University School of Law.
Provided that a quorum is present, the nominees for director who receive the most affirmative votes will be elected to fill the available seats on our Board of Directors.
The following is a brief biography of each current director who is not nominated for election at the Annual Meeting but will continue to serve on our Board of Directors following the Annual Meeting as of the date of this Proxy Statement.
David D. Davidar has served on our Board of Directors since 2003 and is a member of our Compensation Committee and our Nominating and Corporate Governance Committee. Mr. Davidar served as our Senior Vice President, Operations from January 2013 until March 2016 and as our Vice President, Operations from 2003 to January 2013. He founded Trinity Axis Inc, a company that designs, develops, and integrates hardware, software, and electronics primarily in the smart vending space, and currently serves as its President & Chief Executive Officer. Prior to Globus, Mr. Davidar served as the Executive Director of Highway Home, an assisted living facility, from 1995 to 2003. Mr. Davidar also served in a management
capacity for Pizza Hut, Inc. from 1993 to 1995. Mr. Davidar received a B.Com. in commerce, economics and management from the University of Madras, a postgraduate diploma in personnel management at the Madras School of Social Work, and an M.B.A. from Bloomsburg University. Mr. Davidar’s role as one of our founders and his operational leadership of our Company have contributed significantly to our success and provided him with a deep familiarity with our Company, its history and business, and he brings valuable operational insight and managerial skills to our Board of Directors.
John A. DeFord, Ph.D. has served as a member of our Board of Directors since September 2023. Dr. DeFord previously served as a member of the board of directors of NuVasive from February 2018 to September 2023. Dr. DeFord is currently chairman, Chief Executive Officer and President of Samothrace Medical Innovations. Dr. DeFord previously served as the Executive Vice President and Chief Technology Officer for Becton, Dickinson and Company (“BD”), a global medical technology company, from June 2018 until his retirement in May 2021. While at BD, Dr. DeFord also served as the Senior Vice President, research and development for the interventional segment from December 2017 to June 2018, following its acquisition of C.R. Bard (“Bard”) where he had served as Senior Vice President, science, technology and clinical affairs since June 2007. Dr. DeFord joined Bard in 2004 and served in science and technology roles of increasing responsibility during that time. Prior to joining Bard, Dr. DeFord was managing director of Early Stage Partners, a venture capital fund, and prior to his time at Early Stage Partners, Dr. DeFord was President and Chief Executive Officer of Cook Incorporated, a privately held medical device manufacturer. He also serves on the board of directors of Maravai LifeSciences Holdings (NASDAQ: MRVI) and Nordson Corporation (NASDAQ: NDSN). Dr. DeFord graduated from Purdue University with a B.S. and M.S. in electrical engineering and a Ph.D. in electrical/biomedical engineering.
Robert A. Douglas joined Globus Medical’s Board of Directors in December of 2019, and is a member of our Audit Committee. He has over thirty years of experience in medical device technology, with particular expertise in digital health. From 2012 to 2023, Mr. Douglas served as the President and Chief Operating Officer in the Office of the CEO for ResMed Inc. (NYSE: RMD, ASX: RMD), a medical device and software applications company specializing in cloud-connected devices. ResMed’s solutions diagnose, treat and manage respiratory disorders and improve care in out-of-hospital settings. Currently, Mr. Douglas serves on the Board of Directors of XCMR, a start-up in biosecurity innovation incorporating UVC into wearable, portable and stationary devices to prevent the transmission of infectious disease. Through 2023 Mr. Douglas served as Vice Chairman on the Board of Directors of the San Diego Regional Economic Development Corporation and was a member of its Executive Committee. He also served as Vice Chairman on the Board of Directors of EvoNexus, a non-profit technology incubator and hub for Southern California’s startup community designed to accelerate the growth and success of entrepreneurial companies. Mr. Douglas has an M.B.A. from Macquarie University, and a B.E.E. (bachelor’s in electrical engineering) with first-class honors and a B.S. in computer sciences from the University of New South Wales, Sydney. Mr. Douglas’s extensive operating experience, leadership roles, and his financial and accounting expertise qualify him to serve on our Board of Directors as an audit committee financial expert.
Daniel T. Scavilla has served as Globus Medical’s President and Chief Executive Officer since April 2022, leading the Company’s acquisition of NuVasive, Inc. in an all-stock deal valued at $3 billion and integrating the two organizations to create the second largest spine technology company in the world. Mr. Scavilla serves on Globus Medical’s Board of Directors and is a member of the Nominating and Corporate Governance Committee. Previously, he served as Globus Medical’s Executive Vice President, Chief Commercial Officer and President, Trauma, where he scaled the Company’s manufacturing and distribution capabilities and launched the Orthopedics and Trauma business unit. Mr. Scavilla joined Globus Medical as Chief Financial Officer in 2015. Prior to joining Globus Medical, Dan spent 28 years in increasing leadership roles within Johnson & Johnson (“J&J”), including serving as Chief Financial Officer, Global Vice President Finance & Business Operations of J&J Vision ($4 billion annual global revenue), and as Chief Financial Officer, Worldwide Vice President Finance of Advanced Sterilization Products—J&J’s infection prevention business within its MedTech business unit—helping to capture the number one market position in sterilization. Additional roles at J&J included financial
management positions at McNeil Consumer Healthcare (Kenvue), Centocor Biologics, and Cilag Schaffhausen Operations in Switzerland (Janssen Pharmaceutical). Mr. Scavilla serves on the board of Dentsply Sirona (NASDAQ: XRAY), the world’s largest manufacturer of professional dental products and technologies, and is a member of their Audit Committee. He served on the board of directors of Impulse Dynamics, a privately held medical technology company focused on minimally invasive treatment options for heart failure patients, from November 2021 to July 2023. Mr. Scavilla received a B.S. in Finance and Organizational Behavior from LaSalle University and holds an M.B.A. in International Management from Temple University.
James R. Tobin has served on our Board of Directors since August 2015 and is a member of our Nominating and Corporate Governance Committee and Compensation Committee. Mr. Tobin served as President and Chief Executive Officer of Boston Scientific from March 1999 to July 2009. Before joining Boston Scientific, Mr. Tobin served as the President and Chief Executive Officer of Biogen, Inc., from 1997 to 1998 and as its Chief Operating Officer from 1994 to 1997. Mr. Tobin also worked at Baxter International in various capacities from 1972 to 1994, including as its President and Chief Operating Officer from 1992 to 1994. Mr. Tobin currently serves as Chairman of the Board of TransMedics, Inc. (NASDAQ: TMDX), a company specializing in technology for preservation of organs for transplant. He also serves on the board of directors of Lyra Therapeutics (NASDAQ: LYRA), a clinical-stage company developing medicines precisely designed to target ear, nose and throat (ENT) diseases, and Xenter, Inc., a privately held interventional cardiology medical device company. Mr. Tobin served as a Lieutenant in the U.S. Navy from 1968 to 1972. Mr. Tobin holds an M.B.A. from Harvard Business School and an A.B. from Harvard College. Mr. Tobin is well qualified to serve on our Board of Directors and on our Compensation Committee and Nominating and Corporate Governance Committee for numerous reasons, including his decades of experience as a senior executive of large multinational healthcare and medical device companies, which includes his service as President and Chief Executive Officer of Boston Scientific.
Daniel J. Wolterman has served on our Board of Directors since September 2023. Mr. Wolterman previously served as a member of the board of directors of NuVasive, Inc. (“NuVasive”) from July 2015 to September 2023 and as board chair from May 2021 to September 2023. Mr. Wolterman is currently Chief Executive Officer of Wolterman Consulting, LLC, a provider of strategic and operational consulting services to healthcare providers and other entities. From January 2018 to May 2019, Mr. Wolterman served as Chief Executive Officer of ColubrisMX and X-Cath, both privately held medical device companies. Mr. Wolterman previously served as President and Chief Executive Officer of Memorial Hermann Health System, the largest not-for-profit health system in Southeast Texas, from 2002 until his retirement from Memorial Hermann in May 2016. He has more than 40 years of experience in the healthcare industry and a long history of community involvement. He currently serves as a member of the board of directors of Hyperfine. Mr. Wolterman earned a B.S. in business administration, an M.B.A. in finance from the University of Cincinnati and a master’s degree in healthcare administration from Xavier University.
Stephen T. Zarrilli has served on our Board of Directors since May 2019 and is a member of our Audit Committee. Mr. Zarrilli has over 25 years of finance, investment and operating experience in technology and life science enterprises. Mr. Zarrilli also has substantial governance experience with public companies. From July 2018 to March 2020, Mr. Zarrilli served as the President and Chief Executive Officer of the University City Science Center, an urban research park that provides commercialization resources to life science and technology entrepreneurs. From 2012 to 2018, Mr. Zarrilli served as the President, Chief Executive Officer and Director of Safeguard Scientifics, Inc. a capital provider to technology and life science companies, which he joined in 2007 as Senior Vice President and Chief Financial Officer. He began his career at Deloitte LLP and was previously the Chairman and Founder of the Penn Valley Group, a management advisory firm; Chief Financial Officer of Fiberlink Communications Corporation, a security software company; Chief Executive Officer of Concellera Software, Inc., a document management software company; and Chief Executive Officer of US Interactive, Inc. a digital marketing firm. He holds a B.S. in accounting from LaSalle University and has completed the Advanced Management Program at the Wharton School of the University of Pennsylvania. Mr. Zarrilli’s extensive operating
experience, leadership roles, and his financial and accounting expertise qualify him to serve on our Board of Directors as an audit committee financial expert.
Our business and affairs are managed under the direction of our Board of Directors. Our Amended and Restated Bylaws, as amended from time to time (the “Bylaws”) provide that our Board of Directors must consist of between five and 11 directors, and such number of directors within this range may be determined from time to time by resolution of our Board of Directors or our stockholders. Our current Board of Directors is comprised of 11 members and is divided into three classes. Upon the expiration of the initial term of office for each class of directors, each director in such class will be elected for a term of three years and serve until a successor is duly elected and qualified or until his or her earlier death, resignation or removal. Any additional directorships resulting from an increase in the number of directors or a vacancy may be filled by the directors then in office or by a vote of our stockholders at a duly convened meeting.
There are no family relationships between any directors, director nominees, and executive officers.
For information regarding the members of our Board of Directors, please see the discussion of their respective experiences, qualifications, attributes and skills under “Proposal 1-Election of Directors” above.
Our Board of Directors holds regular meetings throughout the year and holds special meetings as and when necessary. Our full Board of Directors held five regular meetings and two special meetings in 2024. Each director attended at least 75% of the meetings of the Board of Directors and the committees on which he or she served during 2024.
Our Board of Directors encourages but does not require independent directors to attend the annual meeting of stockholders. Two of our directors, though none of our independent directors, attended our 2024 annual meeting of stockholders.
Our Board of Directors has affirmatively determined that Messrs. Lemaitre, Tobin, Douglas, Zarrilli, Davidar, and Wolterman, Dr. DeFord and Mses. Rhoads and Norwalk meet the definition of “independent director” under New York Stock Exchange listing standards.
We are a “controlled company” as set forth in New York Stock Exchange Rule 303A.00 because more than 50% of the voting power of our common stock is held by David C. Paul, our Chairman of the Board of Directors and Executive Chairman. Under New York Stock Exchange rules, a “controlled company” may elect not to comply with certain New York Stock Exchange corporate governance requirements, including the requirement that a majority of the Board of Directors consist of independent directors and the requirement that director nominations and executive compensation must be approved by a majority of independent directors or a Nominating and Corporate Governance Committee or Compensation Committee comprised solely of independent directors. We rely, and intend to continue to rely, on certain of these exemptions from the corporate governance requirements. In particular, though we have determined that a majority of our directors and all of the members of our Audit Committee are independent, our Compensation Committee and our Nominating and Corporate Governance Committee do not consist entirely of independent directors. Accordingly, you may not have the same protections afforded to stockholders of companies that are subject to all of the New York Stock Exchange corporate governance requirements.
David C. Paul, our founder and Executive Chairman, is the Chairman of our Board of Directors, and Daniel T. Scavilla is the Chief Executive Officer. We have determined that a leadership structure consisting of separate Chairman of the Board of Directors and Chief Executive Officer roles is appropriate for the Company. At the same time, we also believe that it is important to have a Chairman of the Board of Directors with an extensive history with and knowledge of the Company, as is the case with our founder and Executive Chairman.
Since 2019, the Board of Directors has not had a lead independent director. In February 2025, the Board of Directors re-instated the role of Lead Independent Director and selected Jim Tobin to serve in such role. The duties of our Lead Independent Director include calling and presiding over meetings of our non-management directors as well as presiding over meetings of the Board of Directors where our Chairman is not present. In addition, our Lead Independent Director also serves as a liaison between our management directors and non-management directors.
Our non-management directors meet in executive sessions at least once annually and our Lead Independent Director presides over such meetings.
Risk is inherent with every business, and how well a business manages risk can ultimately determine its success. Management is responsible for the day-to-day management of the risks that we face, while our Board of Directors, as a whole and through its committees, has responsibility for the oversight of risk management. In its risk oversight role, our Board of Directors is responsible for satisfying itself that the risk management processes designed and implemented by management are adequate and functioning as designed.
Our Board of Directors does not have a standing risk management committee, but rather administers this oversight function directly through our Board of Directors as a whole, as well as through various standing committees of the Board of Directors that address risks inherent in their respective areas of oversight. In particular, our Board of Directors is responsible for monitoring and assessing strategic risk exposure, including a determination of the nature and level of risk appropriate for us. Our Board of Directors also oversees our risk management relating to cybersecurity infrastructure and data protection and security-related risks. They receive reports regarding such risks from management, including our Senior Vice President of Corporate Quality and IT. Our Compensation Committee assesses whether our compensation policies and practices for our employees create incentives that are reasonably likely to have a material adverse effect on the Company, and based on this assessment our Compensation Committee believes that our compensation policies and practices do not create a reasonable likelihood of a material adverse effect on the Company. Our Audit Committee has the responsibility to consider and discuss our major financial risk exposures and the steps our management has taken to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. The Audit Committee also monitors oversight of the performance of our internal audit function and reviews risk assessments related to cybersecurity. Our entire Board of Directors monitors the effectiveness of our corporate governance guidelines, including whether they are successful in preventing illegal or improper liability-creating conduct. Our Compensation Committee assesses and monitors whether any of our compensation policies and programs have the potential to encourage excessive risk-taking.
As a medical device company, we have also implemented a compliance function that monitors compliance with various company policies, specifically those governing relationships with health care professionals and compliance with anti-kickback laws and laws restricting off-label promotion of medical devices. Our Audit Committee is responsible for oversight of our compliance function, but our Board of Directors, as a whole, also receives regular updates regarding, and evaluates the effectiveness of, our compliance program.
Committees of the Board of Directors
Our Board of Directors has three permanent committees: the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. The written charters for these committees are on our website at https://www.investors.globusmedical.com/corporate-governance/governance-documents. Our Board of Directors may from time to time establish other standing committees. In addition, from time to time, special committees may be established under the direction of our Board of Directors when necessary to address specific issues.
We have an Audit Committee consisting of Ann D. Rhoads, Daniel T. Lemaitre, Stephen T. Zarrilli, Robert A. Douglas, and Leslie V. Norwalk, each of whom has been determined to be an independent director. The Audit Committee is responsible for, among other things:
•appointing, terminating, compensating and overseeing the work of any accounting firm engaged to prepare or issue an audit report or other audit, review or attest services;
•reviewing and approving, in advance, all audit and non-audit services to be performed by the independent auditor, taking into consideration whether the independent auditor’s provision of non-audit services to us is compatible with maintaining the independent auditor’s independence;
•reviewing and discussing the adequacy and effectiveness of our accounting and financial reporting processes and controls and the audits of our financial statements;
•establishing and overseeing procedures for the receipt, retention and treatment of complaints received by us regarding accounting, internal accounting controls or auditing matters, including procedures for the confidential, anonymous submission by our employees regarding questionable accounting or auditing matters;
•investigating any matter brought to its attention within the scope of its duties and engaging independent counsel and other advisors as the Audit Committee deems necessary;
•determining compensation of the independent auditors and of advisors hired by the Audit Committee and ordinary administrative expenses;
•reviewing and discussing with management and the independent auditor the annual and quarterly financial statements prior to their release;
•monitoring and evaluating the independent auditor’s qualifications, performance and independence on an ongoing basis;
•reviewing reports to management prepared by the internal audit function, as well as management’s response;
•reviewing and assessing the adequacy of the formal written charter on an annual basis;
•reviewing and approving related-party transactions for potential conflict of interest situations on an ongoing basis;
•serving as the Qualified Legal Compliance Committee in accordance with Section 307 of the Sarbanes-Oxley Act of 2002 and the rules and regulations of the SEC; and
•handling such other matters that are specifically delegated to the Audit Committee by our Board of Directors from time to time.
Our Board of Directors has affirmatively determined that each member of our Audit Committee, Mses. Rhoads and Norwalk and Messrs. Lemaitre, Douglas and Zarrilli, meets the definition of an “independent director” for purposes of serving on an Audit Committee under New York Stock Exchange Rule 303A.07, and that each of Mses. Rhoads and Norwalk and Messrs. Lemaitre, Douglas and Zarrilli is an “audit committee financial expert.”
In 2024, our Audit Committee held four meetings.
We have a Compensation Committee consisting of Daniel T. Lemaitre, James R. Tobin, David D. Davidar, and Daniel J. Wolterman, each of whom has been determined to be an independent director, and David C. Paul, our Executive Chairman. The Compensation Committee is responsible for, among other things:
•reviewing and approving the compensation, employment agreements and severance arrangements and other benefits of all of our executive officers and key employees;
•reviewing and approving, on an annual basis, the corporate goals and objectives relevant to the compensation of the executive officers, and evaluating their performance in light thereof;
•reviewing and making recommendations, on an annual basis, to the Board of Directors with respect to director compensation;
•reviewing and discussing with management the compensation of our executive officers, and recommending that it be included in the annual proxy statement and annual report on Form 10-K;
•periodically reviewing and assessing the adequacy of the formal written charter; and
•such other matters that are specifically delegated to the Compensation Committee by our Board of Directors from time to time.
The Compensation Committee has authority to delegate responsibility to subcommittees. Messrs. Lemaitre and Tobin also serve on our Equity Compensation Committee, a standing subcommittee of our Compensation Committee established to administer our equity-based compensation plans.
In 2024, our Compensation Committee held one meeting.
We have a Nominating and Corporate Governance Committee consisting of James R. Tobin, Ann D. Rhoads, David D. Davidar, and Dr. John A. DeFord, each of whom has been determined to be an independent director, David C. Paul, our Executive Chairman, and Daniel T. Scavilla, our President and Chief Executive Officer. The Nominating and Corporate Governance Committee is responsible for, among other things:
•identifying and screening candidates for our Board of Directors, and recommending nominees for election as directors;
•establishing procedures to exercise oversight of the evaluation of the Board of Directors and management;
•developing and recommending to the Board of Directors a set of corporate governance guidelines, as well as reviewing these guidelines and recommending any changes to the Board of Directors;
•reviewing the structure of the Board of Directors’ committees and recommending to the Board of Directors for its approval directors to serve as members of each committee, and where appropriate, making recommendations regarding the removal of any member of any committee;
•reviewing and assessing the adequacy of the formal written charter on an annual basis; and
•generally advising our Board of Directors on corporate governance and related matters.
In 2024, our Nominating and Corporate Governance Committee did not meet, but conducted business by written consent.
The Nominating and Corporate Governance Committee and the Board of Directors have not established a specific diversity component in their consideration of candidates for director and instead consider the diversity of directors as part of the overall mix of factors when identifying and evaluating candidates for the Board of Directors. The Company considers diversity broadly to include differences of viewpoint, professional experience, individual characteristics, qualities and skills, resulting in naturally varying perspectives among the directors and individual skills that complement the full Board of Directors. Therefore, the Board of Directors, as a unit, possesses the appropriate skills and experience to oversee the Company’s business.
Our Board of Directors performs an annual self-evaluation process in which each director evaluates the Board of Directors as a whole and each committee on which he or she serves. After these evaluations are complete, the results are discussed by the Board of Directors and each committee, as applicable, and, if necessary, action plans are developed.
At least once a year, the Board of Directors, or the Nominating and Governance Committee, evaluates the size and composition of the Board of Directors to assess the skills and experience of directors, and compares them with those skills that might prove valuable in the future, giving consideration to the changing circumstances of the Company and the then current Board of Directors membership. This assessment enables the Board of Directors to consider whether the skills and experience of the existing members continue to be appropriate as the Company’s needs evolve over time.
None of our executive officers serve as members of the board of directors or compensation committee (or other committee performing equivalent functions) of any entity that has one or more executive officers serving on our Board of Directors or Compensation Committee. No interlocking relationship exists between any member of the Board of Directors and any member of the compensation committee (or other committee performing equivalent functions) of any other company.
Mr. Paul, our Executive Chairman, has served on our Compensation Committee since 2007.
Prohibitions on Hedging, Pledging and Margin Accounts
We maintain an insider trading policy that applies to our directors and officers and to our employees and consultants who receive or have access to material nonpublic information. Our insider trading policy prohibits our directors and our officers who are required to file Forms 3 or 4 pursuant to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) from holding Company stock in margin accounts, pledging Company stock as collateral for a loan, or engaging in hedging or monetization transactions in respect of Company stock. Our insider trading policy strongly discourages our employees from holding Company stock in margin accounts, pledging Company stock as collateral for a loan, or engaging in hedging or monetization transactions in respect of Company stock.
Our Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and Bylaws provide that we shall indemnify our directors and officers to the fullest extent permitted by law. In addition, as permitted by the laws of the State of Delaware, we have entered into indemnification agreements with each of our directors and certain of our officers. Under the terms of our indemnification agreements, we are required to indemnify each of our directors and officers, to the fullest extent permitted by the laws of the State of Delaware, if the indemnitee acted in good faith and in a manner the indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful. We must indemnify our officers and directors against any and all (a) costs and expenses (including attorneys’ and experts’ fees, expenses and charges) actually and reasonably paid or incurred in connection with investigating, defending, being a witness in or participating in, or preparing to investigate, defend, be a witness in or participate in, and (b) judgments, fines, penalties and amounts paid in settlement in connection with, in the case of either (a) or (b), any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, by reason of the fact that (x) such person is or was a director or officer, employee, agent or fiduciary of the Company or (y) such person is or was serving at our request as a director, officer, employee or agent or fiduciary of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise. The indemnification agreements also require us, if so requested, to advance within 30 days of such request any and all costs and expenses that such director or officer incurred, provided that such person will return any such advance if it shall ultimately be determined that such person is not entitled to be indemnified for such costs and expenses. Our Bylaws also require that such person return any such advance if it is ultimately determined that such person is not entitled to indemnification by us as authorized by the laws of the State of Delaware.
We are not required to provide indemnification under our indemnification agreements for certain matters, including:
We have adopted a code of ethics relating to the conduct of our business by all of our employees, officers and directors, as well as a code of ethics specifically for our principal executive officer and senior financial officers. Both codes of ethics, and our corporate governance guidelines, are posted on our website at https://www.investors.globusmedical.com/corporate-governance/governance-documents.
We have established a process to receive communications from stockholders and other interested parties. Stockholders and other interested parties may contact any member or all members of the Board of Directors, any committee of the Board of Directors, or any chair of any committee by mail. To communicate with the Board of Directors, any individual director or any group or committee of directors, correspondence should be addressed to the Board of Directors or any such individual director or group or committee of directors by either name or title. All such correspondence should be sent to Kelly G. Huller, our Corporate Secretary, at Globus Medical, Inc., Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, PA 19403.
The Audit Committee has reviewed and discussed the Company’s audited consolidated financial statements as of and for the year ended December 31, 2024 and internal controls over financial reporting with our management and Deloitte & Touche LLP, our independent registered public accounting firm for the year ended December 31, 2024. Further, the Audit Committee has discussed with Deloitte & Touche LLP the matters required to be discussed under the applicable standards of the Public Company Accounting Oversight Board (the “PCAOB”) and the rules of the SEC relating to the firm’s judgment about the quality, not just the acceptability, of the Company’s accounting principles, the reasonableness of significant judgments and estimates, and the clarity of disclosures in the consolidated financial statements.
The Audit Committee also has received the written disclosures and the letter from Deloitte & Touche LLP required by the applicable standards of the PCAOB, which relate to Deloitte & Touche LLP’s independence from our Company, and has discussed with Deloitte & Touche LLP its independence from our Company. The Audit Committee has concluded that the independent registered public accounting firm is independent from our Company and our management. The Audit Committee has also discussed with our management and Deloitte & Touche LLP such other matters and received such assurances from them as it has deemed appropriate.
The Audit Committee also reviewed management’s report on its assessment of the effectiveness of our internal control over financial reporting. In addition, the Audit Committee reviewed key initiatives and programs aimed at strengthening the effectiveness of our internal and disclosure control structure. As part of this process, the Audit Committee continues to monitor the scope and adequacy of our internal auditing program.
Based on the reviews, reports and discussions referred to above, the Audit Committee recommended to the Board of Directors, and the Board of Directors approved, that our audited consolidated financial statements for the year ended December 31, 2024 and management’s assessment of the effectiveness of our internal control over financial reporting be included in our Annual Report on Form 10-K for the year ended December 31, 2024, for filing with the SEC.
Submitted by the Audit Committee of the Board of Directors.
Members of the Audit Committee
Ann D. Rhoads (Chair)
Daniel T. Lemaitre
Stephen T. Zarrilli
Robert A. Douglas
Leslie V. Norwalk
The above Audit Committee Report does not constitute soliciting material and shall not be deemed filed or incorporated by reference into any other Company filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except to the extent that we specifically incorporate the Audit Committee Report by reference therein.
In February 2025, our Board approved an amendment to our existing 2021 Equity Incentive Plan (the “2021 Plan”; and such amendment, the “2021 Plan Amendment”), subject to stockholder approval. If approved by our stockholders, the 2021 Plan Amendment will become effective upon such approval.
As of this date, the aggregate number of shares of Class A Common Stock that may be issued or transferred pursuant to awards under the 2021 Plan is the sum of (i) 9,000,000 shares of our Class A Common Stock and (ii) any shares of Class A Common Stock that are available for issuance under the existing 2012 Equity Incentive Plan (the “2012 Plan”) as of the effective date of the 2021 Plan or that become available for future grants or awards under the 2021 Plan. If approved, the 2021 Plan Amendment would increase the share amount in subclause (i) above by 2,000,000 shares to 11,000,000 shares of Class A Common Stock. The 2021 Plan Amendment would also increase the aggregate number of shares of Class A Common Stock that may be issued or transferred under the 2021 Plan pursuant to incentive stock options under Section 422 of the Code from 9,000,000 to 11,000,000.
The Company awarded options for 2,788,857 shares of our Class A Common Stock in 2024. With the 2021 Plan Amendment, the Board strives to continue promoting the success and enhance the value of the Company by aligning the individual interests of non-employee directors, employees and consultants with those of stockholders. The increase of 2,000,000 shares of Class A Common Stock strengthens the Company’s ability to motivate, attract, and retain non-employee directors, employees, and consultants in a competitive environment.
The material features of the 2021 Plan are summarized below under the heading “Equity Compensation Plans – 2021 Equity Incentive Plan.”
We encourage stockholders to read the full text of the 2021 Plan, as amended by the 2021 Plan Amendment, in its entirety which is set forth on Appendix A to this proxy statement.
New Plan Benefits under the 2021 Plan as Amended
Future benefits under the 2021 Plan as amended as described in this Proposal 2 generally will be granted at the discretion of the Compensation Committee and are therefore not currently determinable.
The table below shows, as to each of the Company’s executive officers named in the Summary Compensation Table of this Proxy Statement and the various indicated individuals and groups, the awards granted between January 1, 2024 and December 31, 2024 under the 2021 Plan. As of April 1, 2025, the closing price of the common stock as reported on NYSE was $73.39 per share.
|
|
|
|
Name | Title | Stock Options under 2021 Plan (1) |
Restricted Stock Units(2) |
David C. Paul | Chairman of the Board of Directors and Executive Chairman | $1,573,332 | _ |
Daniel T. Scavilla | Chief Executive Officer and President | $2,936,866 | _ |
Keith W. Pfeil | Chief Operating Officer and Chief Financial Officer | $1,258,665 | _ |
Kelly G. Huller | Executive Vice President, General Counsel and Corporate Secretary | $839,110 | _ |
All current executive officers as a group (4 persons) |
| $6,607,995 | _ |
All current directors who are not executive officers as a group (9 persons) |
| $3,039,090 | _ |
All employees, including current officers who are not executive officers, as a group (representing 3,545 persons) |
| $53,141,640 | $2,499,859 |
(1)Reflects the grant date fair value of the awards, as calculated for financial statement reporting purposes in accordance with Accounting Standards Codification (ASC) No. 718, Compensation – Stock Compensation. These values have been determined based on the assumptions set forth in Note 13 to our consolidated financial statements included in our 2024 Annual Report on Form 10-K. See “2024 Outstanding Equity Awards at Fiscal-Year-End” below, for a description of those stock option awards.
(2)The fair value of restricted stock units is estimated using the closing price of the Company’s common stock on the date of grant.
Recommendation of the Globus Medical, Inc. Board of Directors
THE GLOBUS MEDICAL, INC. BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GLOBUS MEDICAL, INC. STOCKHOLDERS VOTE “FOR” THE APPROVAL OF THE AMENDMENT TO THE 2021 EQUITY INCENTIVE PLAN.
The Audit Committee of our Board of Directors has selected Deloitte & Touche LLP, an independent registered public accounting firm, to audit our financial statements for the fiscal year ending December 31, 2025. We are asking our stockholders to ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for 2025.
Deloitte & Touche LLP has audited our financial statements since April 2017. A representative of Deloitte & Touche LLP is expected to be present at the Annual Meeting. The representative will have an opportunity to make a statement if he or she desires to do so and will be available to respond to appropriate questions.
The ratification of our independent registered public accounting firm by our stockholders is not required by law or our Bylaws. However, the Audit Committee believes it is good corporate practice to submit the selection of our independent registered public accounting firm to the stockholders for ratification. If the stockholders fail to ratify the selection, the Audit Committee will reconsider whether or not to retain Deloitte & Touche LLP. Even if the selection is ratified, the Audit Committee in its discretion may direct the appointment of a different independent registered public accounting firm at any time during the year if the Audit Committee determines that such a change would be in the best interests of the Company and our stockholders.
The following table represents aggregate fees billed to us for the fiscal years ended December 31, 2024 and 2023 by Deloitte & Touche LLP.
|
|
|
|
|
|
|
|
| 2024 |
| 2023 | ||||
Audit Fees(1) | $ | 2,761,825 |
|
| $ | 2,868,003 |
|
Audit Related Fees(2) | 1,895 |
|
| 194,186 |
| ||
Tax Fees(3) | 140,640 |
|
| 249,254 |
| ||
All Other Fees | — |
|
| — |
| ||
Total Fees | $ | 2,904,360 |
|
| $ | 3,311,443 |
|
(1)Audit Fees represent fees and out-of-pocket expenses for professional services provided in connection with the audit of the Company’s consolidated financial statements, including the audit of the effectiveness of internal control over financial reporting, and the review of the Company’s quarterly consolidated financial statements.
(2)Audit Related Fees consist of fees for attest and related services that are reasonably related to the performance of the audit or review of the financial statements but not listed as “Audit Fees” and include attest services related to due diligence services and annual subscription to Deloitte & Touche LLP’s online resource library and online document repository. Audit Related Fees in 2023 included fees for advisory services performed in connection with the NuVasive acquisition. Audit Related Fees in 2024 included fees for other advisory services.
(3)Tax Fees consist of fees related to tax compliance services and consultation services on various domestic and international tax matters including services related to due diligence.
Consistent with SEC policies regarding auditor independence, the Audit Committee is responsible for appointing, setting compensation and overseeing the work of the independent registered public accounting firm. In recognition of this responsibility, the Audit Committee has established a policy to pre-approve all audit and permissible non-audit services provided by the independent registered public accounting firm. The Audit Committee approved all permissible non-audit services provided by the independent registered accounting firms in 2024 and 2023.
Before engaging the Company’s independent registered public accounting firm, management must submit a request for approval to the Audit Committee, which reviews such request and approves or declines to approve it. The Audit Committee may delegate pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decision to the Audit Committee at its next scheduled meeting.
RECOMMENDATION OF THE BOARD OF DIRECTORS
Our Board of Directors unanimously recommends that you vote “FOR” the ratification of the Board of Directors’ appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the year ending December 31, 2025.
Pursuant to Section 14A of the Exchange Act, we are providing our stockholders with the right to approve, on a non-binding, advisory basis, the compensation of our “named executive officers” as disclosed in this Proxy Statement under the heading “Compensation Discussion and Analysis” (“CD&A”) and tabular disclosures of this Proxy Statement. Since the required vote is advisory, the result of the vote is not binding upon the Board of Directors. We have a policy of holding the advisory vote annually. The next advisory vote will occur at our 2025 Annual Meeting.
Our compensation philosophy is centered on our goal of establishing and maintaining an executive compensation program, which applies to all of our named executive officers, that attracts proven, talented leaders who possess the skills and experience necessary to achieve our strategic goals and to create value for our stockholders. Further, our executive compensation program is weighted towards performance-based compensation such that our executive officers will see returns that are correlated to returns realized by our stockholders.
We evaluate and reward our executive officers, generally on an annual basis, based upon the realization of our corporate objectives, including sales, and the individual contributions of each executive officer towards these objectives. Our Compensation Committee considers a variety of objective and subjective performance criteria for setting the compensation levels for each of our executive officers and also considers what it believes to be market standards for compensation paid to similarly situated executives at other comparable companies. We make decisions about our executive officers’ salary increases and the amount of annual non-equity incentive awards primarily based on company performance, but we also consider individual performance when appropriate.
The compensation packages for our executive officers generally include a base salary, annual non-equity incentive awards, stock option awards and other benefits. In addition, our equity compensation plans provide our named executive officers and all other optionees with acceleration of vesting of stock options upon either a change of control or a termination of employment in connection with a change in control, depending on the specific plan under which the options were granted and if our acquiror does not assume or replace the awards under our equity compensation plans. In limited circumstances, we will provide severance payments to certain of our named executive officers upon their termination of employment.
Our Compensation Committee does not rely strictly on formulaic guidelines for determining the relative mix or levels of cash and equity-based compensation for our executive officers. Instead, it maintains a flexible compensation program that allows it to adapt components and levels of compensation to motivate and reward individual executives within the context of our desire to attain specific strategic and financial goals.
The Compensation Committee has and will continue to take action to structure our executive compensation practices in a manner that is performance-based with a view towards maximizing long-term stockholder value. Our Board of Directors believes that the executive compensation as disclosed in the CD&A, tabular disclosures, and the other narrative executive compensation disclosures in this Proxy Statement coincides with our compensation philosophy.
We are asking our stockholders to indicate their support for the compensation of our named executive officers as disclosed in the CD&A, tabular disclosures, and other narrative executive compensation disclosures in this Proxy Statement by casting a non-binding advisory vote “FOR” the following resolution:
“RESOLVED, that the compensation paid to the Company’s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the compensation discussion and analysis, compensation tables and narrative discussion, is hereby APPROVED.”
The above say-on-pay resolution is non-binding. The approval or disapproval of this proposal by stockholders will not require the Board of Directors or the Compensation Committee to take any action regarding our executive compensation practices. The Board of Directors values the opinions of our stockholders as expressed through their votes and other communications. Although the resolution is non-binding, the Board of Directors will consider the outcome of the advisory vote on executive compensation when making future compensation decisions.
The Board of Directors recommends a vote FOR the approval, on an advisory basis, of the compensation paid or to be paid to our named executive officers as described in the CD&A, the tabular disclosures and the other narrative executive compensation disclosures in this Proxy Statement.
In accordance with the requirements of Section 14A(a) of the Exchange Act, we are submitting for stockholder vote a non-binding resolution to determine whether the advisory stockholder vote on executive compensation shall occur every one, two, or three years.
After consideration of the various arguments supporting each frequency level, the Board of Directors believes that submitting the advisory vote on executive compensation to stockholders on an annual basis is appropriate for the Company and our stockholders at this time.
Our stockholders have four choices (every one, two, or three years, or abstain). Stockholders are not voting to approve or disapprove the Board of Directors’ recommendation.
Effect of Proposal
The Frequency Vote is non-binding. Stockholder approval of a one-, two-, or three-year frequency vote will not require us to implement an advisory vote on executive compensation every one, two, or three years. The final decision on the frequency of the advisory vote on executive compensation remains with the Board of Directors and/or its committees.
The Board of Directors values the opinions of our stockholders as expressed through their votes and other communications. Although the resolution is non-binding, the Board of Directors and the Compensation Committee will consider the outcome of the Frequency Vote when making future decisions regarding the frequency of say-on-pay votes.
The Board of Directors recommends that you vote, on an advisory basis, for future stockholder advisory votes on executive compensation to be held every ONE YEAR.
The following individuals served as our executive officers during the year ended December 31, 2024 and their respective ages and positions as of April 1, 2025 were as follows:
|
|
|
Name | Age | Position |
David C. Paul | 58 | Chairman of the Board of Directors and Executive Chairman |
Daniel T. Scavilla | 60 | Director, Chief Executive Officer and President |
Keith W. Pfeil | 46 | Chief Operating Officer and Chief Financial Officer |
Kelly G. Huller | 53 | Executive Vice President, General Counsel and Corporate Secretary |
David C. Paul has served as Chairman of our Board of Directors since our inception in 2003 and as Executive Chairman since August 2017. His biography is contained in the section of this Proxy Statement titled “Proposal 1-Election of Directors” above.
Daniel T. Scavilla has served as Globus Medical’s President and Chief Executive Officer since April 2022. He is also on our Board of Directors and is a member of our Nominating and Corporate Governance Committee. His biography is contained in the section of this Proxy Statement titled “Board of Directors” above.
Keith W. Pfeil has served as our Chief Operating Officer and Chief Financial Officer since February 2024. Mr. Pfeil leads the Company’s operations, finance, tax, pricing and contracts, internal audit, quality, information technology, investor relations, strategy and business development functions. In addition, he oversees the Company’s biologics business unit—Bone Bank Allografts. Mr. Pfeil helped lead the Company’s acquisition of NuVasive and serves on the Executive Steering Committee for the integration of Globus Medical and NuVasive. Mr. Pfeil joined Globus as Chief Financial Officer in August 2019 after more than 15 years at CSS Industries, Inc., a publicly traded consumer products company. At CSS, he served as the Executive Vice President and Chief Financial Officer. Prior to that role, Mr. Pfeil served in various financial roles of increasing responsibility with focus areas including audit, business development, controllership, financial planning and analysis, investor relations and treasury. Prior to CSS Industries, he worked in the transaction advisory practice of Ernst & Young LLP, and prior to that, he worked in the assurance practices of KPMG LLP and Arthur Andersen LLP. Mr. Pfeil received a B.S. in accounting from Elizabethtown College and an Executive M.B.A. from Saint Joseph’s University.
Kelly G. Huller has been the Executive Vice President, General Counsel and Corporate Secretary since December 2018. Ms. Huller began her career at Globus in 2006 as its first in-house counsel. Ms. Huller leads the Company’s global legal department, overseeing its intellectual property, litigation and corporate legal functions, supporting all regions and business units and having responsibility for corporate and commercial transactions, employment law, risk management, corporate governance and securities matters. Prior to joining Globus, Ms. Huller was a trial attorney at Conrad O’Brien (now Clark Hill) in Philadelphia, representing public and private entities and non-profit organizations in areas of commercial, employment, products liability, and malpractice matters. She also served on the board of directors for Chester County Futures, a non-profit organization providing comprehensive academic, mentoring and scholarship support for motivated economically disadvantaged youth. Ms. Huller received a B.A. from Pennsylvania State University and earned her J.D. from Temple University.
The discussion below includes a review of our compensation decisions with respect to 2024 for our “named executive officers,” including our principal executive officer, our principal financial officer, and our three other most highly compensated executive officers. Our named executive officers for 2024 were:
•David C. Paul, who currently serves as our Chairman of the Board of Directors and Executive Chairman;
•Daniel T. Scavilla, who currently serves as our Chief Executive Officer and President and is our principal executive officer;
•Keith W. Pfeil, who currently serves as our Chief Operating Officer and Chief Financial Officer and is our principal financial officer; and
•Kelly G. Huller, who currently serves as our Executive Vice President, General Counsel and Corporate Secretary.
Our business is highly competitive, and competition presents an ongoing challenge to our success. Our ability to compete and succeed in this environment is directly dependent on our ability to recruit, retain and motivate talented and skilled individuals to form our executive team. Our compensation philosophy is centered on our goal of establishing and maintaining an executive compensation program that attracts proven, talented leaders who possess the skills and experience necessary to achieve our strategic goals and to create value for our stockholders. Further, our executive compensation program, which applies to all of our named executive officers, is weighted towards performance-based compensation such that our executive officers will see returns that are correlated to returns realized by our stockholders. The decisions with respect to our executive compensation are subject to the discretion of our Compensation Committee. Our Compensation Committee does not rely strictly on formulaic guidelines for determining the relative mix or levels of cash and equity-based compensation for our executive officers; instead, it maintains a flexible compensation program that allows it to adapt components and levels of compensation to motivate and reward individual executives within the context of our desire to attain specific strategic and financial goals.
The compensation packages for our executive officers, including our named executive officers, generally include a base salary, annual non-equity incentive compensation, stock option awards and other benefits. In addition, our equity compensation plans provide our executive officers and all other optionees with acceleration of vesting of stock options upon either a change of control or a termination of employment in connection with a change in control, depending on the specific plan under which the options were granted and if our acquiror does not assume or replace the awards under our equity compensation plans. In limited circumstances, we will provide severance payments to certain of our named executive officers upon termination of their employment.
We evaluate and reward our named executive officers, generally on an annual basis, based upon the realization of our corporate objectives, including sales revenue, and the individual contributions of each named executive officer towards these objectives. David Paul, our current Chairman of the Board of Directors and Executive Chairman, made recommendations to the Compensation Committee regarding compensation of our named executive officers for 2025, but our Compensation Committee as a whole is ultimately responsible for establishing and reviewing all compensatory plans and arrangements with respect to our named executive officers, including Mr. Paul. The Compensation Committee may approve the recommendations, make adjustments in their discretion, or seek additional information from the Company or legal counsel before making a final determination with respect to the compensation of any named executive officer, including Mr. Paul. Our Compensation Committee considers a variety of objective and subjective performance criteria for setting compensation levels for each of our named executive officers and also considers what it believes to be market standards for compensation paid to similarly situated executives at other comparable companies. We make decisions about our named executive officers’ salary increases and the amount of annual non-equity incentive awards primarily based on company performance, but we also consider individual performance when appropriate. Individual factors we consider in compensation determinations include an executive’s skills and capabilities, contributions as a member of the executive
management team, contributions to our overall performance, and the sufficiency of total compensation potential and structure to ensure the retention of an executive when considering the compensation potential that may be available elsewhere.
Our current executive compensation program is based in part upon input provided to the Compensation Committee by independent compensation consultants FW Cook in 2023. The Compensation Committee evaluated the independence of FW Cook in 2023 and concluded that its work for the Compensation Committee did not raise any conflict of interest.
A key factor in determining levels and types of compensation of our named executive officers is the pay practices of our peer group, which consists of publicly-traded medical device companies that our Compensation Committee believes are the most comparable to our Company. The peer group typically changes from time to time due to industry consolidation, new market entrants, and other factors.
Based on recommendations from FW Cook, respectively, our peer group for 2025 will consist of the following companies:
|
|
|
CONMED | Insulet | QuidelOrtho |
The Cooper Companies | Integer | Teleflex |
Dentsply Sirona
| LivaNova | Alphatec Holdings |
Enovis | Merit Medical Systems | Integra Lifesciences |
Envista | Penumbra | Glaukos |
At our 2024 annual meeting of stockholders, we conducted a stockholder advisory vote on executive compensation (the “say-on-pay vote”) and over 95% of the votes cast were voted in favor of our executive compensation. The Compensation Committee believes this result evidences stockholder support for our executive compensation decisions and policies, and as such, the Compensation Committee did not implement any changes as a result of this vote. In a separate advisory vote at the 2019 annual meeting of stockholders, our stockholders voted to hold the say-on-pay vote annually. At this year’s annual meeting our stockholders will vote, on an advisory basis, on the frequency of the advisory vote on executive compensation. The Compensation Committee will consider the results of future say-on-pay votes when making executive compensation decisions and policies.
We generally pay executive compensation through a combination of base salary, annual non-equity incentive compensation, long-term equity incentives in the form of stock options, and benefits. We do not use specific formulas or weightings in determining the allocation of the various compensation elements. Instead, compensation for each of our executives has been designed to provide a combination of fixed and at-risk compensation that is tied to achievement of our short-term and long-term objectives. We believe that this approach achieves the primary objectives of our compensation program, which are to recruit, retain and properly motivate our executives. The Compensation Committee retains the discretion to increase or decrease the actual amount of any executive officer’s annual non-equity incentive compensation based on his or her individual performance during the year.
In 2024, we compensated our named executive officers through a combination of base salary, annual non-equity incentive compensation, long-term equity incentives in the form of stock options, and benefits that included health, vision and dental insurance, paid time-off, life insurance, short-term and long-term disability insurance, 401(k) plan with Company matching contributions, relocation assistance, gym membership reimbursement, and car allowance. We believe the forms and mix of compensation provided to our named executive officers in 2024 appropriately reward performance, as the non-equity incentive plan compensation is tied to our Company
performance as well as individual performance, and help to align the interests of our named executive officers with those of our stockholders, particularly through the grants of annual equity incentives.
Base Salary. Base salaries for all of our employees are determined by position, taking into consideration the scope of job responsibilities and competitive market compensation paid by other companies for similar positions. Base salaries are also driven by market competition to attract and retain high quality professionals. Our overall approach to setting base salaries is to create and sustain long-term stockholder value by balancing our need to retain high-quality professionals while appropriately managing our general and administrative expenses.
The Compensation Committee approved merit increases to the 2024 base salaries for our named executive officers of 3% over each such named executive officer’s 2023 base salary other than Mr. Pfeil, whose base salary was increased to $460,000 as a result of his promotion to Chief Operating Officer.
Annual Non-Equity Incentive Compensation. In 2024, all of our named executive officers participated in our annual non-equity incentive compensation plan, pursuant to which they were eligible to earn cash payments (which were paid in February 2025). To establish the potential payout amounts for each named executive officer under the 2024 Non-Equity Incentive Compensation Plan (the “2024 Plan”), the Compensation Committee assigned a “base reference” dollar amount for each named executive officer. Payment above or below the base reference amount was dependent on the degree to which the Company exceeded or fell short of the 2024 revenue goal set by the committee of $2.5 billion. Under the 2024 Plan, achievement of 100% of the revenue goal would result in non-equity incentive compensation equal to 110% of the base reference amount, which we refer to as our target bonus for our named executive officers and is set forth as the “Target” for each named executive officer in the “Estimated Possible Payouts Under Non-Equity Incentive Plan Awards – Target” column of the 2024 Grants of Plan-Based Awards table below. Achievement of 75% or less of goal revenue would result in non-equity incentive compensation of zero dollars (representing the minimum, or “Threshold,” payout amount) and achievement of 110% of goal revenue would result in non-equity incentive compensation of 145% of the base reference amount (representing the “Maximum” payout amount). The Compensation Committee developed a range of possible payout amounts between the Threshold and Maximum payout amounts based on achievement of corresponding revenue amounts specified at revenue levels between 75% and 110% of the Company’s revenue goal. Achievement of revenue between the specified revenue levels would result in a payout amount based generally on interpolation between the specified revenue levels. In addition, the Compensation Committee reviews the Company’s performance on Compliance and Quality as a basis for 10% of the total bonus, and at its sole discretion decides on the achievement of this objective. Under the 2024 Plan, after determining the amount of non-equity incentive compensation payable based on achievement of the specified revenue goal, the Compensation Committee reserves the right, in its discretion, to adjust the final amounts payable to each named executive officer on an individual basis, based on the committee’s evaluation of such named executive officer’s individual performance during each fiscal year.
In 2024, we ultimately achieved worldwide revenue of $2.521 billion, which was 100.8% of the revenue goal of $2.5 billion. Based on this performance, the Compensation Committee determined the non-equity incentive compensation payout amounts would be calculated at a rate of 111% of the applicable base reference amounts.
Equity Incentive Compensation. The Compensation Committee believes that stock option awards are an important and useful long-term component of our overall compensation program. Stock options generally expire after ten years and vest ratably over four years. If an officer dies or becomes disabled, unexercised stock options generally are forfeited within one year. If an officer otherwise leaves our employ for any reason other than for cause, unexercised stock options generally are forfeited three months after termination of employment. If an officer’s employment is terminated for cause, unexercised stock options are typically forfeited upon termination of employment.
In 2024, all of our named executive officers received options to purchase shares of our common stock as set forth in the “Number of Securities Underlying Options” column of the 2024 Grants of Plan-Based Awards table below. The number of options awarded each named executive officer generally was aligned with the committee’s historical practice. See the section of this Proxy Statement titled “2024 Outstanding Equity Awards at Fiscal Year-End” below, for a description of those stock option awards. All equity awards to our named executive officers
were granted at no less than the fair market value of our common stock at the time of the grants, as determined by our Board of Directors.
Employee Benefits and Perquisites. Each named executive officer receives the same company-wide benefits as are generally available to all other salaried employees, such as short- and long-term disability insurance, basic life insurance and eligibility for supplemental health and life insurance, access to flexible health care reimbursement accounts and 401(k) matching. Additionally, our named executive officers are entitled to a vehicle allowance.
The following table sets forth certain compensation information for our named executive officers.
Name and Principal Position | Year | Salary(1) ($) | Bonus | Option Awards(3) | Non-Equity Incentive Plan Compensation(4) | All Other Compensation(5) | Total |
David C. Paul, Chairman of the Board of Directors and Executive Chairman | 2024 | 457,419 | - | 1,573,332 | 999,000 | 30,049 | 3,059,800 |
2023 | 448,506(7) | - | 2,015,952 | 726,109 | 31,129 | 3,221,696 | |
2022 | 427,870 | 16,573(2) | 1,521,693 | 623,171 | 23,542 | 2,612,849 | |
Daniel T. Scavilla, Chief Executive Officer and President | 2024 | 481,077 | - | 2,936,886 | 1,404,150 | 36,547 | 4,858,660 |
2023 | 463,500 | 150,000(6) | 2,896,394 | 1,021,500 | 32,980 | 4,564,374 | |
2022 | 437,064 | 194,117(2) | 2,447,972 | 705,883 | 33,282 | 3,818,318 | |
Keith W. Pfeil, Chief Operating Officer and Chief Financial Officer | 2024 | 463,555 | - | 1,258,665 | 605,454 | 35,604 | 2,363,278 |
2023 | 414,690 | 100,000(6) | 1,179,403 | 336,375 | 32,980 | 2,063,448 | |
2022 | 402,612 | 6,217(2) | 811,569 | 233,783 | 33,282 | 1,487,463 | |
Kelly G. Huller, Executive Vice President, General Counsel and Corporate Secretary | 2024 | 357,265 | - | 839,110 | 403,636 | 28,612 | 1,628,623 |
2023 | 344,210 | 100,000(6) | 910,610 | 258,750 | 26,378 | 1,639,948 | |
2022 | 334,184 | 4,974(2) | 608,677 | 187,026 | 17,056 | 1,151,917 |
(1)Reflects the base salary earned during the fiscal year covered.
(2)Reflects the amount awarded by the Compensation Committee in excess of what the executive was entitled to pursuant to the non-equity incentive compensation plan.
(3)Reflects the grant date fair value for each named executive officer’s stock option awards, computed in accordance with Financial Accounting Standards Board, Accounting Standards Codification Topic 718, Stock Compensation. These values have been determined based on the assumptions set forth in Note 13 to our consolidated financial statements included in our 2024 Annual Report on Form 10-K. See the section of this Proxy Statement titled “2024 Outstanding Equity Awards at Fiscal-Year-End” below, for a description of those stock option awards.
(4)Reflects cash amounts earned pursuant to our annual non-equity incentive plan for the fiscal year covered. All such cash payouts earned under this plan in a given year were paid in the following year.
(5)Amounts for 2024 include participation in our group health insurance benefits, Company 401(k) plan matching contributions, vehicle allowance, YMCA membership reimbursement, and life and disability insurance premiums. The compensation amounts for our group health insurance benefits in 2024 were $18,531 for Messrs. Scavilla and Pfeil, $13,837 for Mr. Paul, and $11,251 for Ms. Huller.
(6)The Compensation Committee awarded Messrs. Scavilla and Pfeil and Ms. Huller one-time awards in recognition of their work in the successful closing of the NuVasive acquisition. Mr. Scavilla received an option grant of 10,000 shares and a $150,000 cash bonus and Mr. Pfeil and Ms. Huller received an option grant of 5,000 shares and a $100,000 cash bonus.
(7)Includes $7,800 paid to Mr. Paul in 2023 for vehicle allowance that related to 2022.
2024 Grants of Plan-Based Awards
The table below sets forth information with respect to awards granted to the named executive officers under our annual non-equity incentive compensation plan and the 2021 Equity Incentive Plan (the “2021 Plan”) in 2024, which constitute all of the plan-based awards granted to our named executive officers in 2024.
Name | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards |
|
|
| ||
Threshold | Target(1) | Maximum(2) | Number of Securities Underlying Options (#) | Per-Share Exercise Price of Option Awards ($/Share) | Grant Date Fair Value of Option Awards(3) ($) | ||
David C. Paul | January 26, 2024 | - | 990,000 | 1,305,000 | 75,000 | 53.75 | 1,573,332 |
Daniel T. Scavilla | January 26, 2024 | - | 1,391,500 | 1,834,250 | 140,000 | 53.75 | 2,936,886 |
Keith W. Pfeil | January 26, 2024 | - | 600,000 | 790,909 | 60,000 | 53.75 | 1,258,665 |
Kelly G. Huller | January 26, 2024 | - | 400,000 | 527,273 | 40,000 | 53.75 | 839,110 |
(1)These payouts represent the amount payable upon achievement of 100% of the revenue goal under the non-equity incentive compensation plan, which represent a payment of 110% of the base reference amount set by the Compensation Committee.
(2)These payouts represent the amount payable upon achievement of 110% of the revenue goal under the non-equity incentive compensation plan, which represent a payment of 145% of the base reference amount set by the Compensation Committee.
(3)Reflects the grant date fair value for each named executive officer’s stock option awards, computed in accordance with Financial Accounting Standards Board, Accounting Standards Codification Topic 718, Stock Compensation. These values have been determined based on the assumptions set forth in Note 13 to our consolidated financial statements included in our 2024 Annual Report on Form 10-K. See the section of this Proxy Statement titled “Outstanding Equity Awards as of December 31, 2024” below, for a description of those stock option awards.
The following table lists the outstanding equity awards held by our named executive officers as of December 31, 2024:
|
|
|
|
|
| Option Awards | |||
Name | Number of Securities Underlying Unexercised Options – Exercisable | Number of Securities Underlying Unexercised Options – Unexercisable | Option Exercise Price | Option Expiration Date |
David C. Paul (1) | 34,375 | - | 25.52 | 1/25/2026 |
David C. Paul (2) | 106,250 | - | 26.27 | 1/30/2027 |
David C. Paul (3) | 100,000 | - | 43.77 | 1/22/2028 |
David C. Paul (4) | 100,000 | - | 43.58 | 1/22/2029 |
David C. Paul (5) | 100,000 | - | 53.27 | 1/22/2030 |
David C. Paul (6) | 97,917 | 2,083 | 65.05 | 1/14/2031 |
David C. Paul (7) | 54,688 | 20,312 | 63.68 | 1/27/2032 |
David C. Paul (8) | 35,938 | 39,062 | 75.18 | 1/26/2033 |
David C. Paul (9) | - | 75,000 | 53.75 | 1/26/2034 |
Daniel T. Scavilla (5) | 80,000 | - | 53.27 | 1/22/2030 |
Daniel T. Scavilla (6) | 48,958 | 1,042 | 65.05 | 1/14/2031 |
Daniel T. Scavilla (7) | 29,167 | 10,833 | 63.68 | 1/27/2032 |
Daniel T. Scavilla (10) | 40,000 | 20,000 | 79.00 | 4/21/2032 |
Daniel T. Scavilla (8) | 47,917 | 52,083 | 75.18 | 1/26/2033 |
Daniel T. Scavilla (11) | 3,125 | 6,875 | 53.02 | 10/10/2033 |
Daniel T. Scavilla (9) | - | 140,000 | 53.75 | 1/26/2034 |
Keith W. Pfeil (4) | 5,833 | - | 49.65 | 9/3/2029 |
Keith W. Pfeil (5) | 9,167 | - | 53.27 | 1/22/2030 |
Keith W. Pfeil (6) | 39,167 | 833 | 65.05 | 1/14/2031 |
Keith W. Pfeil (7) | 29,167 | 10,833 | 63.68 | 1/27/2032 |
Keith W. Pfeil (8) | 19,167 | 20,833 | 75.18 | 1/26/2033 |
Keith W. Pfeil (11) | 1,563 | 3,437 | 53.02 | 10/10/2033 |
Keith W. Pfeil (9) | - | 60,000 | 53.75 | 1/26/2034 |
Kelly G. Huller(2) | 7,500 | - | 25.96 | 2/2/2027 |
Kelly G. Huller(3) | 10,000 | - | 45.64 | 2/2/2028 |
Kelly G. Huller(4) | 40,000 | - | 43.58 | 1/22/2029 |
Kelly G. Huller(4) | 10,000 | - | 46.41 | 2/27/2029 |
Kelly G. Huller (5) | 40,000 | - | 53.27 | 1/22/2030 |
Kelly G. Huller (6) | 29,375 | 625 | 65.05 | 1/14/2031 |
Kelly G. Huller (7) | 21,875 | 8,125 | 63.68 | 1/27/2032 |
Kelly G. Huller (8) | 14,375 | 15,625 | 75.18 | 1/26/2033 |
Kelly G. Huller (11) | 1,563 | 3,437 | 53.02 | 10/10/2033 |
Kelly G. Huller (9) | - | 40,000 | 53.75 | 1/26/2034 |
(1)These options were granted in 2016. All remaining unexercised stock options from 2016 became exercisable during 2020.
(2) These options were granted in 2017. All remaining unexercised stock options from 2017 became exercisable during 2021.
(3) These options were granted in 2018. All remaining unexercised stock options from 2018 became exercisable during 2022.
(4) These options were granted in 2019. All remaining unexercised stock options from 2019 became exercisable during 2023.
(5) These options were granted in 2020. All remaining unexercised stock options from 2020 became exercisable during 2021.
(6) These options were granted on January 14, 2021, and vest over a four-year period with one-fourth (1/4) of the options granted
vesting on January 1, 2022, the first anniversary of the vesting commencement date, and the balance of the options granted
vesting ratably on a monthly basis over the following 36 months.
(7)These options were granted on January 27, 2022, and vest over a four-year period with one-fourth (1/4) of the options granted
vesting on January 1, 2023, the first anniversary of the vesting commencement date, and the balance of the options granted
vesting ratably on a monthly basis over the following 36 months.
(8)These options were granted on January 26, 2023, and vest over a four-year period with one-fourth (1/4) of the options granted
vesting on January 1, 2024, the first anniversary of the vesting commencement date, and the balance of the options granted
vesting ratably on a monthly basis over the following 36 months.
(9)These options were granted on January 26, 2024, and vest over a four-year period with one-fourth (1/4) of the options granted
vesting on January 1, 2024, the first anniversary of the vesting commencement date, and the balance of the options granted
vesting ratably on a monthly basis over the following 36 months.
(10)These options were granted on April 21, 2022, and vest over a four-year period with one-fourth (1/4) of the options granted
vesting on April 21, 2023, the first anniversary of the vesting commencement date, and the balance of the options granted
vesting ratably on a monthly basis over the following 36 months.
(11)These options were granted on October 10, 2023, and vest over a four-year period with one-fourth (1/4) of the options granted
vesting on September 1, 2024, the first anniversary of the vesting commencement date, and the balance of the options granted
vesting ratably on a monthly basis over the following 36 months.
2024 Option Exercises Table
|
|
|
|
|
|
| Option Awards | ||
Name |
| Number of shares acquired on exercise |
| Value realized on exercise |
Kelly G. Huller |
| 22,500 |
| 1,031,450 |
Daniel T. Scavilla |
| 190,000 |
| 8,224,800 |
David C. Paul |
| 26,042 |
| -(1) |
Keith W. Pfeil |
| - |
| - |
(1)Mr. Paul exercised these options and did not sell them on the open market.
Equity Compensation Plans
The following description of each of our equity compensation plans is qualified by reference to the full text of those plans. Our 2012 Plan was filed with the SEC as exhibits to Amendment No. 1 to our Registration Statement on Form S-1 (File No. 333-180426), filed on May 8, 2012. Our 2021 Equity Incentive Plan was filed with the SEC as Exhibit 10.1 on Form 8-K filed on June 4, 2021 and the amended 2021 Equity Incentive Plan was filed with the SEC as Exhibit 10.1 on Form 8-K filed on June 6, 2024. Our equity compensation plans are designed to continue to give our company flexibility to make a wide variety of equity awards to reflect what the Compensation Committee believes at the time of such award will best motivate and reward our employees, directors, consultants, and other service providers.
In connection with our acquisition of NuVasive, we assumed two additional equity plans: the NuVasive 2014 Equity Incentive Plan (the “NuVasive 2014 Plan”), and the Ellipse Technologies 2015 Incentive Award Plan (the “Ellipse 2015 Plan”), which are filed as Exhibit 10.18 and 10.19 respectively to Form 10-K filed on February 21, 2024. The NuVasive 2014 Plan terminated pursuant to its terms in 2024.
As of March 31, 2025, options to purchase 7,767,342 shares of our Class A common stock and 138,825 restricted stock units (“RSUs”) were outstanding under the 2021 Plan and 2,550,463 shares of our Class A common stock were available for grant under the 2021 Plan; options to purchase 4,448,392 shares of our Class A common stock were outstanding under the 2012 Plan; 168,414 RSUs were outstanding under the NuVasive 2014 Plan; and 58,117 RSUs were outstanding and 299,780 shares of our Class A common stock were available for grant under the Ellipse 2015 Plan.
The 2012 Plan was adopted by our Board of Directors in March 2012, and approved by our stockholders in June 2012. The 2012 Plan terminated pursuant to its terms in 2022. Following the effectiveness of our 2021 Equity Incentive Plan, we have not issued any additional awards under the 2012 Plan; however, all awards previously granted under the 2012 Plan remain outstanding and are administered by our Board of Directors under the terms and conditions of the 2012 Plan.
The 2012 Plan provides for the grant of “incentive stock options,” as defined in Section 422 of the Code to employees, and for the grant of non-qualified stock options, restricted stock, RSUs, stock appreciation rights, stock payments and performance awards, including performance stock units and cash awards, to employees, consultants and non-employee directors.
In the event of a merger or consolidation, the sale or exchange of all of our common stock, the sale, transfer or disposition of all or substantially all of our assets, or our liquidation or dissolution, or a “change in control” (as defined in the 2012 Plan), the administrator may take one or more of the following actions with respect to outstanding awards, as appropriate:
•provide for the assumption or substitution of the awards;
•cancel the award if no amount would have been attained upon exercise of the award or realization of the participant’s rights;
•accelerate the awards in whole or in part;
•cash out the awards;
•make adjustments in the number and kind of shares subject to outstanding awards;
•convert the awards into the right to receive liquidation proceeds;
•provide that the award cannot vest, be exercised or become payable after such event; or
•any combination of the above.
In the event of a corporate transaction where the acquiror does not assume or replace options granted under the 2012 Plan, such outstanding options will become fully vested and exercisable immediately prior to, and will terminate upon, the consummation of the corporate transaction.
Purpose
The purpose of the 2021 Plan is to attract and retain employees, non-employee directors and consultants, and advisors. The 2021 Plan is intended to promote the success and enhance the value of the Company by providing an incentive to participants for outstanding performance to align the economic interests of participants with those of our stockholders.
Type of Awards
The 2021 Plan provides for the issuance of stock options (including non-statutory stock options and incentive stock options), stock appreciation rights (“SARs”), restricted stock, RSUs, stock bonuses and other stock-based awards to officers, employees, non-employee directors, advisors and consultants of Globus Medical, Inc. or any of its subsidiaries.
Administration
The 2021 Plan will be administered by the Compensation Committee of our Board, and the Compensation Committee will determine all of the terms and conditions applicable to awards under the 2021 Plan. Our Compensation Committee will also determine who will receive awards under the 2021 Plan and the number of shares of Class A Common Stock that will be subject to awards, except that awards to members of our Board must be authorized by a majority of our Board. Our Board or Compensation Committee may delegate to one or more subcommittees or one or more officers of the Company authority to grant or amend awards under the 2021 Plan. Awards to any individual who is subject to Section 16 of the Exchange Act will be approved by a subcommittee consisting solely of independent directors. Our Compensation Committee, our Board, any subcommittee or any officer, as applicable, that has authority with respect to a specific award will be referred to as “the committee” in this description of the 2021 Plan.
Shares Subject to the Plan
Subject to adjustment, the total number of shares of Class A Common Stock that may be issued or transferred pursuant to awards under the 2021 Plan is the sum of (i) 9,000,000 shares of our Class A Common Stock and (ii) any shares of Class A Common Stock that are available for issuance under the 2012 Plan as of the effective date of the 2021 Plan or that become available for future grants of awards under the 2021 Plan as described below. Should Proposal 2 be adopted, the number of shares of Class A Common Stock under subclause (i) above will be increased to 11,000,000. See the section of this Proxy Statement titled “2021 Equity Incentive Plan – Purpose” above for information regarding the number of shares subject to outstanding awards and the number of shares available for grant under the 2021 Plan.
If any award under the 2021 Plan or the 2012 Plan is forfeited, terminates, expires or lapses for any reason, or is settled for cash without delivery of shares of Class A Common Stock, the shares of our Class A Common Stock subject to such awards under the 2021 Plan or the 2012 Plan will again be, or will become, available for awards under the 2021 Plan. Any shares of Class A Common Stock that are tendered or withheld to satisfy the grant or exercise price or tax withholding obligation in connection with all or a portion of an award under the 2021 Plan or the 2012 Plan will again be, or will become, available for award under the 2021 Plan. Any shares subject to a SAR that are not issued in connection with the exercise of a SAR will again be available for award under the 2021 Plan. Any shares of Class A Common Stock repurchased by the Company or otherwise returned to the Company under the 2021 Plan or the 2012 Plan will again be, or will become, available for award under the 2021 Plan.
Awards granted under the 2021 Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock, shall not reduce the number of shares authorized for award under the 2021 Plan. Additionally, in the event that a company acquired by the Company or any of its subsidiaries or with which the Company or any of its subsidiaries combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for award pursuant to the terms of such pre-existing plan (as adjusted) may be used for awards under the 2021 Plan and will not reduce the shares of Class A Common Stock authorized for award under the 2021 Plan, subject to certain limitations as set forth in the 2021 Plan.
Adjustments
In the event of any stock dividend, stock split, subdivision, combination or exchange of shares, merger, consolidation, distribution (other than normal cash dividends) of Company assets to stockholders, reclassification, recapitalization, or any other change affecting the Company’s Class A Common Stock or the share price of the Company’s Class A Common Stock, the committee will make adjustments as it deems appropriate to the following: the aggregate number and kind of shares that may be issued under the 2021 Plan; the number and kind of shares (or other securities or property) subject to outstanding awards; the terms and conditions of any outstanding awards, including, without limitation, any applicable performance targets or criteria; and the award or exercise price per share for any outstanding awards under the 2021 Plan.
Eligibility and Vesting
All of our employees are eligible to receive awards under the 2021 Plan. In addition, our non-employee directors and key advisors who perform services for us may receive awards under the 2021 Plan. The committee determines the vesting terms and conditions to exercise of awards granted under the 2021 Plan. As of March 31, 2025, 4,303 employees and 9 non-employee directors were eligible to receive awards under the 2021 Plan. Advisors and consultants were eligible to receive awards under the 2021 Plan, but historically grants to advisors or consultants have occurred on a limited basis. As of December 31, 2024, 4,195 employees and 9 non-employee directors held awards under the 2021 Plan.
Minimum Vesting.
Awards granted under the 2021 Plan may not vest earlier than the first anniversary of the date of grant. This vesting limitation does not apply to (i) awards granted under the 2021 Plan in connection with the assumption of, or in substitution for, equity awards that were previously granted by another entity in connection with a corporate transaction, (ii) awards to non-employee directors that vest on the earlier of the first anniversary of the date of grant and the next annual meeting of stockholders that is at least 50 weeks after the immediately preceding year’s annual meeting, and (iii) awards granted under the 2021 Plan representing an aggregate of up to 5% of the maximum number of authorized shares available for issuance. The committee has the authority to accelerate the vesting of awards in the event of the participant’s death or disability, or the occurrence of a change of control.
Options
Under our 2021 Plan, the committee will determine the exercise price of the options granted and may grant options to purchase shares of our Class A Common Stock in such amounts as it determines. The committee will also determine the vesting terms of options, which may be based on service with the Company, specified performance criteria or a combination of both. The committee may grant options that are intended to qualify as incentive stock options under Section 422 of the Code, or non-qualified stock options, which are not intended to so qualify. Incentive stock options may only be granted to our employees. Anyone eligible to participate in the 2021 Plan may receive an award of non-qualified stock options. The exercise price of a stock option granted under the 2021 Plan cannot be less than the fair market value of a share of our Class A Common Stock on the date the option is granted. If an incentive stock option is granted to a 10% stockholder of the total combined voting power of all classes of our stock, the exercise price cannot be less than 110% of the fair market value of a share of our Class A Common Stock on the date the option is granted. The aggregate number of shares of Class A Common Stock that may be issued or transferred under the 2021 Plan pursuant to incentive stock options under Section 422 of the Code may not exceed 9,000,000 shares of Class A Common Stock outstanding on the effective date of the 2021 Plan. Should Proposal 2 be adopted, such aggregate number of shares of Class A Common Stock that may be issued or transferred under the 2021 Plan pursuant to incentive stock options under Section 422 of the Code may not exceed 11,000,000.
The exercise price for any option is generally payable in cash or check. In certain circumstances as permitted by the committee, the exercise price may be paid by (i) the surrender of shares of our Class A Common Stock with an aggregate fair market value, on the date the option is exercised, equal to the exercise price; (ii) delivery of a written or electronic notice that a market sell order was placed with a broker with respect to shares of Class A Common Stock issuable upon exercise or vesting of an award, and that the broker was directed to pay net proceeds of the sale to the Company in satisfaction of the aggregate payments required; (iii) other form of legal consideration acceptable to the committee; or (iv) any combination of the foregoing.
The term of an option cannot exceed ten years from the date of grant, except that if an incentive stock option is granted to a 10% stockholder of the total combined voting power of all classes of our stock, the term cannot exceed five years from the date of grant. Except as provided in the award agreement, an option may only be exercised while a participant is providing service to us. The committee will determine in the award agreement under what circumstances and during what periods a participant may exercise an option after termination of service.
Restricted Stock
Under the 2021 Plan, the committee may grant restricted stock awards. A restricted stock award is an award of our Class A Common Stock that may be subject to restrictions as the committee determines. The restrictions, if any, may lapse over a specified period of service, based on specified performance criteria or other criteria as the committee may determine. Except to the extent restricted under the award agreement relating to the restricted stock award, a participant will have all of the rights of a stockholder as to those shares, including the right to vote and the right to receive dividends or distributions on the shares. All unvested restricted stock awards are forfeited if the participant’s service is terminated for any reason, unless the committee determines otherwise. Except as otherwise determined by the committee, upon a participant’s termination from service with the Company, the Company has the right to repurchase unvested shares of restricted stock at a cash price per share equal to the price paid by the participant, if any.
Restricted Stock Units
Under the 2021 Plan, the committee may grant RSUs to anyone eligible to participate in the 2021 Plan. RSUs represent hypothetical shares of our Class A Common Stock. RSUs become payable on terms and conditions determined by the committee, including specified performance goals, and will be payable in cash, shares of Class A Common Stock, or a combination thereof, as determined by the committee. All unvested RSUs are forfeited if the participant’s service is terminated for any reason, unless the committee determines otherwise.
Performance Awards
Under the 2021 Plan, the committee may grant performance awards to anyone eligible to participate in the 2021 Plan. Performance awards may be in the form of performance stock units or awards of cash bonuses or other cash awards as determined by the committee. Performance awards become payable on terms and conditions determined by the committee, including specified performance goals, and will be payable in cash, shares of Class A Common Stock, or a combination thereof, as determined by the committee. All performance awards are forfeited if the participant’s service is terminated for any reason, unless the committee determines otherwise.
The committee may select as the performance measure for a performance cycle any performance goals that it may consider appropriate for the award, which may include, but may not be limited to, one or a combination of the following performance measures, as interpreted by the committee, which measures (to the extent applicable) will be determined in accordance with U.S. generally accepted accounting principles relating to the company and/or its affiliates: (i) net earnings (either before or after one or more of the following: (A) interest, (B) taxes, (C) depreciation and (D) amortization); (ii) gross or net sales or revenue; (iii) net income (either before or after taxes); (iv) adjusted net income; (v) operating earnings (including but not limited to EBITDA or adjusted EBITDA); (vi) cash flow (including, but not limited to, operating cash flow and free cash flow); (vii) return on assets; (viii) return on capital; (ix) return on stockholders’ equity; (x) total stockholder return; (xi) return on sales; (xii) gross or net profit or operating margin; (xiii) operating or other costs and expenses; (xiv) funds from operations; (xv) improvements in expense levels; (xvi) working capital; (xvii) earnings per share; (xviii) adjusted earnings per share; (xix) price per share of common stock; (xx) regulatory body approval for commercialization of a product; (xxi) implementation or completion of critical projects; (xxii) market share; (xxiii) economic value; (xxiv) comparisons with various stock market indices; (xxv) capital raised in financing transactions or other financing milestones; (xxvi) stockholders’ equity; (xxvii) market recognition (including but not limited to awards and analyst ratings); (xxviii) financial ratios; (xxix) implementation, completion or attainment of objectively determinable objectives relating to research, development, regulatory, commercial, or strategic milestones or developments; and (xxx) other similar criteria as determined by the committee. The performance measures may be measured either in absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group or to market performance indicators or indices. The committee may also grant performance awards that are based on measures other than those set forth above.
In determining the level of attainment of each applicable performance measure, the committee may, in its discretion, make objectively determinable adjustments to one or more of the performance measures, including but not limited to (i) items related to a change in accounting principle; (ii) items relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items; (v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company during the applicable performance period; (vii) items related to the disposal of a business or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of a business under U.S. generally accepted accounting principles; (ix) items attributable to any stock dividend, stock split, combination or exchange of stock occurring during the performance period; (x) any other items of significant income or expense that are determined to be appropriate adjustments; (xi) items relating to unusual or extraordinary corporate transactions, events or developments; (xii) items related to amortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s core, ongoing business activities; (xiv) items related to acquired in-process research and development; (xv) items relating to changes in tax laws; (xvi) items relating to major licensing or partnership arrangements; (xvii) items relating to asset impairment charges; (xviii) items relating to gains or losses for litigation, arbitration and contractual settlements; (xix) items relating to any other unusual or non-recurring events or changes in applicable laws, accounting principles or business conditions; or (xx) any such other items as determined by the committee.
Stock Appreciation Rights
Under the 2021 Plan, the committee may grant SARs. At the time the SAR is granted, the committee will establish the exercise price of the SAR, which will be equal to or greater than the fair market value of a share of our Class A Common Stock as of the date of grant.
Generally, SARs may only be exercised while the participant is providing services to us. When a participant exercises a SAR, the participant will receive the excess of the fair market value of the underlying Class A Common Stock over the exercise price of the SAR. The appreciation of a SAR will be paid in shares of our Class A Common Stock, cash or both. The term of a SAR cannot exceed ten years from the date of grant.
Generally, any portion of the SAR that is not exercisable as of the participant’s termination from service will be forfeited, unless the committee determines otherwise.
Other Stock-Based Payments
Under the 2021 Plan, the committee may grant other types of stock payments that are based on, or measured by, our Class A Common Stock, and granted to anyone eligible to participate in the 2021 Plan. The committee will determine the terms and conditions of such awards. Other stock-based payments may be payable in cash, shares of our Class A Common Stock or a combination of the two, as determined by the committee.
Change of Control and Other Corporate Events
In the event of any unusual or non-recurring transactions or events affecting the Company, any subsidiary of the Company, or the financial statements of the Company or any subsidiary, or of changes in applicable law or accounting principles, including, without limitation, a change of control, the committee has the authority to do one or more of the following:
terminate any award in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the exercise of such award;
replace any award with other rights or property having an aggregate value not exceeding the amount that could have been attained upon the exercise of such award;
cause the award to be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or to cause the award to be substituted with a similar award covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof;
make adjustments in the number and type of shares of stock (or other securities or property) subject to outstanding awards and to other terms and conditions of such awards;
accelerate the vesting of or remove any restrictions governing any outstanding award; and
provide that an award cannot vest, be exercised or become payable after such event.
In the event any successor corporation in a change of control fails for any reason to assume or substitute for an award, then such award will become fully vested and, if applicable, exercisable, and all forfeiture restrictions on such award will lapse as of immediately prior to such change of control, and such award will terminate if not exercised (if applicable).
In general terms, a change of control under the 2021 Plan occurs if:
a person, entity or affiliated group, with certain exceptions, acquires more than 50% of our then-outstanding voting securities;
the Company consummates (i) a merger, consolidation, reorganization, or business combination, (ii) a sale or other disposition of all or substantially all of the Company’s assets or (iii) an acquisition of assets or stock of another entity unless the Company’s outstanding voting shares continue to represent at least a majority of the combined voting power of the successor entity and the holders of our voting shares immediately prior to the merger have at least 50% of the combined voting power of the securities in the merged entity or its parent;
a majority of the members of our Board are replaced during any two-year period by directors whose appointment or election is not endorsed by a majority of the incumbent directors; or
we consummate a complete liquidation or dissolution.
Withholding
All awards under the 2021 Plan are subject to applicable U.S. federal (including FICA), state and local, foreign or other tax withholding requirements. We may require participants or other persons receiving awards or exercising awards to pay an amount sufficient to satisfy such tax withholding requirements with respect to such awards, or we may deduct from other wages and compensation paid by us the amount of any withholding taxes due with respect to such award.
The committee may permit or require that our tax withholding obligation with respect to awards paid in our Class A Common Stock be paid by having shares withheld up to an amount that does not exceed the participant’s minimum applicable withholding tax rate for U.S. federal (including FICA), state and local tax liabilities, or as otherwise determined by the committee. In addition, the committee may, in its discretion, and subject to such rules as the committee may adopt, allow participants to elect to have such share withholding applied to all or a portion of the tax withholding obligation arising in connection with any particular award.
Transferability
Unless otherwise determined by the committee, an award under the 2021 Plan may not be transferred except by will or the laws of descent and distribution or, with respect to awards other than incentive stock options, pursuant to a domestic relations order. Only a participant may exercise rights under an award during the participant’s lifetime. Upon death, the personal representative or other person entitled to succeed to the rights of the participant may exercise such rights. RSUs, stock awards and other stock payments may not be transferred so long as the shares are subject to forfeiture restrictions without the written consent of an authorized representative of the Company. The committee may provide in an award agreement that a participant may transfer awards, other than incentive stock options, to family members, or one or more trusts or other entities for the benefit of or owned by family members, consistent with applicable securities laws.
Amendment; Termination
Our Board or the committee may amend or terminate our 2021 Plan at any time, except that our stockholders must approve an amendment if such approval is required in order to comply with the Code, applicable laws or applicable
stock exchange requirements. Unless terminated sooner by our Board or the committee or extended with stockholder approval, no awards may be granted or awarded under the 2021 Plan during any period of suspension or after termination of the 2021 Plan, and in no event may any award be granted under the 2021 Plan after the tenth anniversary of the effective date of the 2021 Plan.
The Board or the committee may, without stockholder approval, amend an award to reduce the exercise price below the per-share exercise price as of the date the award is granted and grant an award in exchange for, or in connection with, the cancellation or surrender of an award having a higher per-share exercise price.
Establishment of Sub-Plans
Our Board may, from time to time, establish one or more sub-plans under the 2021 Plan to satisfy applicable blue sky, securities or tax laws of various jurisdictions.
Clawback
Subject to applicable law, the committee may provide in an award agreement or otherwise that the participant must pay to the Company any proceeds, gains or other economic benefit actually or constructively received by the participant in respect to any award (or the receipt or resale of any shares underlying an award) and that the award will terminate and any unexercised portion of the award (whether or not vested) shall be forfeited if (i) the participant terminates from service with the Company prior to a specified date, or within a specified period following receipt or exercise of the award; (ii) the participant engages in any activity in competition with the Company, or which is harmful to the Company, as determined by the committee; or (iii) the participant terminates from service due to misconduct.
The committee may also provide an award agreement or otherwise that all awards (including any proceeds, gains or other economic benefit actually or constructively received in respect thereof) will be subject to the provisions of the Company’s Recoupment Policy or any other clawback policy implemented by the Company. See the section of this Proxy Statement titled “Compensation Recovery Policies” below for more information on the Company’s Recoupment Policy.
Certain U.S. Federal Income Tax Aspects
The following is a summary of certain U.S. federal income tax consequences of awards under the 2021 Plan. It does not purport to be a complete description of all applicable rules, and those rules (including those summarized here) are subject to change.
Options
An optionee generally will not recognize taxable income upon the grant of a non-statutory option. Rather, at the time of exercise of the option, the optionee will recognize ordinary income for income tax purposes in an amount equal to the excess, if any, of the fair market value of the shares purchased over the exercise price. We generally will be entitled to a tax deduction at such time and in the same amount, if any, that the optionee recognizes as ordinary income. The optionee’s tax basis in any shares received upon exercise of an option will be the fair market value of the shares on the date of exercise, and if the shares are later sold or exchanged, then the difference between the amount received upon such sale or exchange and the fair market value of such shares on the date of exercise will generally be taxable as long-term or short-term capital gain or loss (if the shares are a capital asset of the optionee) depending upon the length of time such shares were held by the optionee.
Incentive stock options are eligible for favorable U.S. federal income tax treatment if certain requirements are satisfied. An incentive stock option must have an option price that is not less than the fair market value of the stock at the time the option is granted, and must be exercisable within ten years from the date of grant. An employee granted an incentive stock option generally does not realize compensation income for U.S. federal income tax purposes upon the grant of the option. At the time of exercise of an incentive stock option, no compensation income is realized by the optionee other than tax preference income for purposes of the federal alternative minimum tax on individual income. If the shares acquired on exercise of an incentive stock option are held for at least two years after grant of the option and one year after exercise, the excess of the amount realized on the sale over the exercise price will be taxed as capital gain. If the shares acquired on exercise of an incentive
stock option are disposed of within less than two years after grant or one year of exercise, the optionee will realize taxable compensation income equal to the lesser of (i) the excess of the fair market value of the shares on the date of exercise over the option price or (ii) the excess of the amount realized on the sale over the option price. Any additional amount realized will be taxed as capital gain.
Stock Awards
A participant generally will not be taxed upon the grant of stock awards subject to restrictions, but rather will recognize ordinary income in an amount equal to the fair market value of the shares at the time the shares are no longer subject to a “substantial risk of forfeiture” (within the meaning of the Code). We generally will be entitled to a deduction at the time when, and in the amount that, the participant recognizes ordinary income on account of the lapse of the restrictions. A participant’s tax basis in the shares will equal their fair market value at the time the restrictions lapse, and the participant’s holding period for capital gains purposes will begin at that time. Any cash dividends paid on the restricted stock before the restrictions lapse will be taxable to the participant as additional compensation (and not as dividend income). Under Section 83(b) of the Code, a participant may elect to recognize ordinary income at the time the shares of stock are awarded in an amount equal to their fair market value at that time, notwithstanding the fact that such shares of stock are subject to restrictions and a substantial risk of forfeiture. If such an election is made, no additional taxable income will be recognized by such participant at the time the restrictions lapse, the participant will have a tax basis in the shares equal to their fair market value on the date of their award, and the participant’s holding period for capital gains purposes will begin at that time. We generally will be entitled to a tax deduction at the time when, and to the extent that, ordinary income is recognized by such participant.
Stock Units
In general, the grant of stock units will not result in income for the participant or in a tax deduction for us. Upon the settlement of such an award in cash or shares, the participant will recognize ordinary income equal to the aggregate value of the payment received, and we generally will be entitled to a tax deduction at the same time and in the same amount.
Stock Appreciation Rights
A participant who is granted a SAR generally will not recognize ordinary income upon receipt of the SAR. Rather, at the time of exercise of such SAR, the participant will recognize ordinary income for U.S. federal income tax purposes in an amount equal to the value of any cash received and the fair market value on the date of exercise of any shares received. We generally will be entitled to a tax deduction at such time and in the same amount, if any, that the participant recognizes as ordinary income. The participant’s tax basis in any shares received upon exercise of a SAR will be the fair market value of the shares on the date of exercise, and if the shares are later sold or exchanged, then the difference between the amount received upon such sale or exchange and the fair market value of such shares on the date of exercise will generally be taxable as long-term or short-term capital gain or loss (if the shares are a capital asset of the participant) depending upon the length of time such shares were held by the participant.
Other Awards
With respect to other stock-based awards granted under the 2021 Plan, generally when the participant receives payment with respect to an award, the amount of cash and/or the fair market value of any shares or other property received will be ordinary income to the participant, and we generally will be entitled to a tax deduction at the same time and in the same amount.
Impact of Section 409A
Section 409A of the Code applies to deferred compensation, which is generally defined as compensation earned currently, the payment of which is deferred to a later taxable year. Awards under the 2021 Plan are intended to be exempt from the requirements of Section 409A or to satisfy its requirements. An award that is subject to Section 409A and fails to satisfy its requirements will subject the holder of the award to immediate taxation, interest and an additional 20% tax on the vested amount underlying the award.
Section 162(m) of the Code
Prior to 2018, Section 162(m) of the Code imposed a $1 million limit on the amount a public company may deduct for compensation paid to a company’s chief executive officer or any of the company’s three other most highly compensated executive officers (other than the chief financial officer) who are employed as of the end of the year. This limitation did not apply to compensation that met the Code requirements for “qualifying performance-based” compensation (i.e., compensation paid only if the individual’s performance meets pre-established objective goals based on performance criteria approved by stockholders, including stock options).
The performance-based compensation exemption and the exemption of the chief financial officer from Section 162(m)’s deduction limit have been repealed, among other changes, effective for taxable years beginning after December 31, 2017, such that awards paid to our covered executive officers (including our Chief Executive Officer) in excess of $1 million will not be deductible in future years, unless they qualify for transition relief applicable to certain arrangements that were in effect as of November 2, 2017 and are not materially modified thereafter.
As in prior years, while deductibility of executive compensation for federal income tax purposes is among the factors the committee considers when structuring our executive compensation arrangements, it is not the sole or primary factor considered. We retain the flexibility to authorize compensation that may not be deductible if we believe it is in the best interests of the Company.
The following table sets forth certain information relating to the Company’s equity compensation plans as of December 31, 2024. Each number of securities reflected in the table is a reference to shares of our Class A common stock.
|
|
|
|
|
|
|
|
|
| Number of securities to be issued upon exercise of outstanding options, warrants and rights |
| Weighted-average exercise price of outstanding options, warrants and rights |
| Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
|
Plan category |
| (a) |
| (b) |
| (c) |
|
Equity compensation plans approved by security holders |
| 11,441,776 | (1) | $55.47 |
| 3,404,477 | (2) |
Equity compensation plans not approved by security holders |
| _ |
| _ |
| _ |
|
Total |
| 11,441,776 |
|
|
| 3,404,477 |
|
(1)Consists of 4,681,955 shares subject to outstanding options under our 2012 Plan, 6,277,250 shares subject to outstanding options under our 2021 Plan, 133,969 shares subject to outstanding RSUs under our 2021 Plan, 276,530 shares subject to outstanding RSUs under our NuVasive 2014 Plan and 72,072 shares subject to outstanding RSUs under our Ellipse 2015 Plan. No future issuances will be made from our 2012 Plan or the NuVasive 2014 Plan.
(2)Consists of 3,117,085 shares available for future issuance under our 2021 Plan and 287,391 under our Ellipse 2015 Plan. The 2021 Plan amount does not include the additional 2,000,000 shares that would become available if Proposal 2 described above is approved.
We may require participants to discharge applicable withholding tax obligations with respect to any award granted to the participant. The administrator may in its discretion allow a holder to meet any such withholding tax
obligations by electing to have us withhold shares of common stock otherwise issuable under any award (or allow the return of shares of common stock) having a fair market value equal to the sums required to be withheld.
Mr. Paul is not party to an employment agreement with the Company. A description of employment agreements with Messrs. Scavilla, and Pfeil and Ms. Huller is set forth below.
On May 3, 2016, we entered into an executive employment agreement with Mr. Scavilla, our current President and Chief Executive Officer and then Senior Vice President and Chief Financial Officer. Mr. Scavilla’s employment is “at will,” meaning that his employment may be terminated by either party for any or no reason at any time. The agreement provides for a monthly car allowance. Mr. Scavilla is eligible to earn a salary and also a non-equity cash incentive award by meeting certain company and individual performance targets. Both the base salary and non-equity incentive award are subject to adjustment from time to time in the sole discretion of the Company.
Mr. Scavilla is entitled to receive his base salary for 12 months and continued coverage under the Company’s group health, dental and vision plans for a period of 12 months in the event we terminate his employment without cause or in connection with a change of control or if he resigned for good reason. All severance payments are conditioned on Mr. Scavilla signing a general release of claims against the Company. Under Mr. Scavilla’s employment agreement, “good reason” is defined as (i) a materially adverse change or material diminution in the office, title, duties, powers, authority or responsibilities of Mr. Scavilla, (ii) our failure to pay his base salary or a bonus that has become due and payable, (iii) a material reduction in his base salary, (iv) a relocation of Mr. Scavilla’s principal worksite of more than 25 miles unless such relocation reduces his commute to such worksite, or (v) a material breach of the employment agreement by the Company; provided in each case that the Company did not correct such reason during a specified cure period.
On August 5, 2020, we entered into executive employment agreements with Kelly G. Huller, our Executive Vice President, General Counsel and Corporate Secretary, and Keith W. Pfeil, our Chief Operating Officer, Chief Financial Officer and Executive Vice President. Each of Ms. Huller’s and Mr. Pfeil’s employment is “at will,” meaning that their employment may be terminated by either party for any or no reason at any time. Both Ms. Huller’s and Mr. Pfeil’s employment agreements provide for a monthly car allowance. Ms. Huller and Mr. Pfeil are each eligible to earn a salary and also a non-equity cash incentive award by meeting certain company and individual performance targets. For 2020, Ms. Huller’s base salary was $315,000.00, and her target non-equity cash incentive award was $175,000.00. For 2020, Mr. Pfeil’s base salary was $339,900.00, and his target non-equity cash incentive award was $200,000.00. For both Ms. Huller and Mr. Pfeil, the base salary and non-equity incentive award are subject to adjustment from time to time in the sole discretion of Globus.
Ms. Huller and Mr. Pfeil are each entitled to receive their respective base salary for 12 months and continued coverage under Globus’ group health, dental and vision plans for a period of 12 months in the event we terminate their employment without cause or in connection with a change of control or if he/she resigns for good reason. All severance payments are conditioned on the employee signing a general release of claims against Globus. Under Ms. Huller’s and Mr. Pfeil’s respective employment agreements, “good reason” is defined as (i) a materially adverse change or material diminution in the office, title, duties, powers, authority or responsibilities, (ii) our failure to pay base salary or a bonus that has become due and payable, (iii) a material reduction in base salary, (iv) a relocation of their principal worksite of more than 25 miles unless such relocation reduces his/her commute to such worksite, or (v) a material breach of the employment agreement by Globus; provided in each case that Globus did not correct such reason during a specified cure period.
Our Compensation Committee has decided to provide, in limited circumstances, certain of our named executive officers with severance payments in order to recruit qualified executives and ensure continued dedication, objectivity and stability of our named executive officers in the event of a change in control. Whether we provide severance benefits to our named executive officers depends on when and under what circumstances we hire the executives, the positions they hold and how difficult our Compensation Committee believes it might be or how long our Compensation Committee believes it might take for them to find comparable employment. In the limited circumstances when we do provide severance benefits, the terms of these severance payments are incorporated into the employment agreements of the named executive officers entitled to receive those payments.
In 2024, Messrs. Scavilla and Pfeil, and Ms. Huller were entitled to severance in the event of a termination of employment. We did not have a severance policy applicable to executive officers in 2024, and no other named executive officers were guaranteed cash severance payments.
As described under “Executive Compensation-Equity Compensation Plans” above, our equity compensation plans provide our named executive officers and all other optionees with acceleration of vesting of stock options upon termination of employment in connection with a change in control or acceleration of vesting of stock options upon a change of control, depending on the specific plan under which those options were granted and if our acquiror does not assume or replace the awards under our equity compensation plans.
We believe these severance and change in control benefits are an important element of our compensation program for our executive officers and that they assist us in recruiting and retaining talented individuals. The Compensation Committee believes that these benefits are valuable as they address the valid concern that it might be difficult for our named executive officers to find comparable employment in a short period of time in the event of termination or change in control. Our Compensation Committee believes that the prospect of a change in control could be a distraction to an executive officer and could cause an executive officer to consider alternative employment opportunities at a time when the executive’s continued service might be crucial to the Company and to our stockholders’ best interests.
In the event of a corporate transaction where we are to be consolidated with or acquired by another entity and the acquiror does not assume or replace the equity awards granted under the 2012 Plan and 2021 Plan, all awards outstanding under our 2012 Plan and 2021 Plan will become fully vested, exercisable and all forfeiture restrictions will lapse immediately prior to the consummation of the transaction.
As described above, Messrs. Scavilla and Pfeil and Ms. Huller are entitled to severance payments in the event of an involuntary, not-for-cause termination of employment, including a termination in connection with a change in control. Also, upon a termination in connection with a change in control of our Company, the unvested stock options held by our named executive officers would vest.
The table below sets forth an estimate of the amounts that would be paid out to our named executive officers upon a change in control and assumes the termination, other than for cause, of the employment of Messrs. Scavilla and Pfeil and Ms. Huller in connection with the change in control. The amounts in the table assume that such change in control was effective as of December 31, 2024. The actual amounts that would be paid can only be determined at the time of a change in control.
|
|
|
|
|
|
|
Name |
| Cash Payment(1) ($) |
| Value of Acceleration of Unvested Stock Options(2) ($) |
| Total |
David C. Paul |
| – |
| 2,889,460 |
| 2,889,460 |
Daniel T. Scavilla |
| 491,974 |
| 4,949,457 |
| 5,441,432 |
Keith W. Pfeil |
| 474,452 |
| 2,217,380 |
| 2,691,832 |
Kelly G. Huller |
| 368,162 |
| 1,543,757 |
| 1,911,919 |
(1)Represents the amounts payable under the employment agreement described under the heading “Employment Agreements” above.
(2)Represents the difference between the exercise price and the fair market value of the unvested shares subject to outstanding stock options on December 31, 2024, calculated based on a closing price of $82.71 of our common stock on December 31, 2024.
The Compensation Committee has reviewed and discussed with management the discussion and analysis of the compensation of our named executive officers as disclosed in this Proxy Statement under the heading “Compensation Discussion and Analysis.” Based on this review and discussion, the Compensation Committee has recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement and incorporated into the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
David C. Paul (Chair)
Daniel T. Lemaitre
James R. Tobin
David D. Davidar
Daniel J. Wolterman
The above Compensation Committee Report does not constitute soliciting material, and shall not be deemed filed or incorporated by reference into any other Company filing under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate the Compensation Committee Report by reference therein.
The Compensation Committee has evaluated our compensation programs and policies as generally applicable to our employees to ascertain any potential material risks that may be created by the compensation programs. The
Compensation Committee concluded that our compensation policies and practices, taken as a whole, are not reasonably likely to have a material adverse impact on our business or our financial condition. The following compensation design features help minimize the incentives for excessive risk-taking:
•our compensation program encourages our employees to remain focused on both our short-term and long-term goals. For example, while our variable cash compensation plans measure performance on an annual basis, our equity awards generally vest over four years, which we believe encourages our employees to focus on our long-term performance;
•we have internal controls over our financial accounting and reporting;
•we include equity compensation as part of the overall compensation mix, ensuring that our compensation program does not over emphasize short-term performance at the expense of long-term value creation; and
•final executive non-equity incentive awards are approved by the Compensation Committee and are subject to discretionary increase or decrease by the Compensation Committee if circumstances warrant an adjustment.
The table below summarizes the compensation received by our non-employee directors who received compensation from us for the fiscal year ended December 31, 2024.
|
|
|
|
|
|
|
|
|
|
Name |
| Fees earned or paid in cash |
| Option Awards(1)(2) ($) |
|
| All Other Compensation ($) |
| Total |
Daniel T. Lemaitre |
| 90,000 |
| 331,524 |
|
| – |
| 421,524 |
Ann D. Rhoads |
| 110,000 |
| 331,524 |
|
| – |
| 441,524 |
James R. Tobin |
| 90,000 |
| 331,524 |
|
| – |
| 421,524 |
David D. Davidar |
| 90,000 |
| 331,524 |
|
| – |
| 421,524 |
Stephen T. Zarrilli |
| 80,000 |
| 331,524 |
|
| – |
| 411,524 |
Robert A. Douglas |
| 80,000 |
| 331,524 |
|
| – |
| 411,524 |
John A. DeFord |
| 80,000 |
| 386,896 |
|
| – |
| 466,896 |
Leslie V. Norwalk |
| 80,000 |
| 331,524 |
|
| – |
| 411,524 |
Daniel J. Wolterman |
| 80,000 |
| 331,524 |
|
| – |
| 411,524 |
(1)Reflects the grant date fair value for each named executive officer’s stock option awards, computed in accordance with Financial Accounting Standards Board, Accounting Standards Codification Topic 718, Stock Compensation. These values have been determined based on the assumptions set forth in Note 13 to our consolidated financial statements included in our 2024 Annual Report on Form 10-K. See the section of this Proxy Statement titled “2024 Outstanding Equity Awards at Fiscal-Year-End” below, for a description of those stock option awards.
(2)The following table lists the outstanding equity awards held by our non-employee directors as of December 31, 2024:
|
|
|
Name |
| Total Shares Subject to Outstanding Stock Options |
Daniel T. Lemaitre |
| 45,625 |
Stephen T. Zarrilli |
| 110,000 |
Ann D. Rhoads |
| 160,000 |
Robert A. Douglas |
| 85,000 |
James R. Tobin |
| 86,666 |
David D. Davidar |
| 185,000 |
John A. DeFord |
| 30,000 |
Leslie V. Norwalk |
| 30,000 |
Daniel J. Wolterman |
| 30,000 |
The form and amount of director compensation are determined and reviewed annually by the Compensation Committee. In 2024, our non-employee directors received from us an annual retainer of $70,000. In addition, the chair of the Audit Committee, currently Ms. Rhoads, received $30,000 per year for serving as committee chair. Other directors who serve on either the Audit, Compensation or Nominating and Corporate Governance Committees received from us $10,000 per year for each committee membership. For non-executive directors participating in our group health insurance plan, we deduct the cost of the plan from the fees we pay the director in cash in order to ensure that total compensation is consistent among non-executive directors.
We also reimburse all non-employee directors for expenses incurred in connection with their service on the Board of Directors, including reimbursement of expenses incurred in connection with attending Board of Directors’ meetings.
In January 2024, our Board of Directors granted an option to purchase 15,000 shares to each of Mses. Rhoads and Norwalk, Dr. DeFord, and Messrs. Lemaitre, Tobin, Zarrilli, Davidar and Douglas pursuant to our 2021 Plan, with an exercise price of $53.75 per share. Each of these stock options vested in full on the one year anniversary of the vesting commencement date.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pay vs Performance Tabular Disclosure (1) | ||||||||||||||||
|
| Summary Compensation |
| Summary Compensation |
| Compensation Actually Paid for First PEO(2) |
| Compensation Actually Paid for Second PEO(2) |
| Summary Compensation Actually Paid for Non-PEO NEOs |
| Average Compensation Actually Paid for Non-PEO NEOs (3) | ||||||
2024 |
|
| — |
| $ | |
|
| — |
| $ | |
| $ | |
| $ | |
2023 |
|
| — |
| $ | |
|
| — |
| $ | |
| $ | |
| $ | |
2022 |
| $ | |
| $ | |
| $ | ( |
| $ | |
| $ | |
| $ | |
2021 |
| $ | |
|
| — |
| $ | |
|
| — |
| $ | |
| $ | |
2020 |
| $ | |
|
| — |
| $ | |
|
| — |
| $ | |
| $ | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pay vs Performance Tabular Disclosure (1) | ||||||||||
|
| Value of Fixed $100 Investment Based On: |
|
|
|
|
|
| ||||
|
| Globus Medical Total Shareholder Return (4) |
| S&P 500 Health Care Equipment Index Total Shareholder Return (4) |
| Net Income |
| |||||
2024 |
| $ | |
| $ | |
| $ | |
| $ | |
2023 |
| $ | |
| $ | |
| $ | |
| $ | |
2022 |
| $ | |
| $ | |
| $ | |
| $ | |
2021 |
| $ | |
| $ | |
| $ | |
| $ | |
2020 |
| $ | |
| $ | |
| $ | |
| $ | |
Notes |
(1)
(2) The dollar amounts reported in these columns represent the amount of “compensation actually paid” to the First PEO and Second PEO, where applicable, in 2020, 2021, 2022, 2023, and 2024, as computed in accordance with Item 402(v) of Regulation S-K. Equity compensation fair value was calculated based on assumptions determined in accordance with FASB ASC Topic 718.
(3)The dollar amounts reported in this column represent the average amount of “compensation actually paid” to the non-PEO NEOs in 2020, 2021, 2022, 2023, and 2024, as computed in accordance with Item 402(v) of Regulation S-K. Equity compensation fair value was calculated based on assumptions determined in accordance with FASB ASC Topic 718.
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PEO Compensation Actually Paid Detail | ||||||||||||||||
|
| David Demski (First PEO) |
| Daniel Scavilla (Second PEO) | ||||||||||||||
Compensation Element |
| 2020 |
| 2021 |
| 2022 |
| 2022 |
| 2023 |
| 2024 | ||||||
Summary Compensation Table (SCT) Reported Total Compensation |
| $ | |
| $ | |
| $ | |
| $ | |
| $ | |
| $ | |
Aggregate SCT Reported Equity Compensation (-) |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | ( |
Year-End Fair Value of Awards Granted During the FY & Outstanding (+) |
|
| |
| $ | |
|
| — |
| $ | |
| $ | |
| $ | |
Year-Over-Year Change in Fair Value of Awards Granted During Previous FYs & Outstanding (+/-) |
| $ | |
| $ | |
|
| — |
| $ | |
| $ | ( |
| $ | |
Year-Over-Year Change in Fair Value of Awards Granted During Previous FYs & Vesting During Covered FY (+/-) |
| $ | ( |
| $ | |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | |
Prior FYE Value of Awards Determined to Fail to Meet Vesting Conditions During Covered FY (-) (a) |
|
| — |
|
| — |
| $ | ( |
|
| — |
|
| — |
|
| — |
Compensation Actually Paid Determination |
| $ | |
| $ | |
| $ | ( |
| $ | |
| $ | |
| $ | |
Notes |
(a)Reflects unvested stock option awards canceled in connection with Demski’s formal resignation as an employee of the Company (effective June 2022).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Non-PEO NEO Compensation Actually Paid Detail | |||||||||||||
Compensation Element |
| 2020 |
| 2021 |
| 2022 |
| 2023 |
| 2024 | |||||
Summary Compensation Table (SCT) Reported Total Compensation |
| $ |
| $ | |
| $ | |
| $ | |
| $ | | |
Aggregate SCT Reported Equity Compensation (-) |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | ( |
| $ | ( |
Year-End Fair Value of Awards Granted During the FY & Outstanding (+) |
| $ |
| $ | |
| $ | |
| $ | |
| $ | | |
Year-Over-Year Change in Fair Value of Awards Granted During Previous FYs & Outstanding (+/-) |
| $ | |
| $ | |
| $ | |
| $ | ( |
| $ | |
Year-Over-Year Change in Fair Value of Awards Granted During Previous FYs & Vesting During Covered FY (+/-) |
| $ | ( |
| $ | |
| $ | ( |
| $ | ( |
| $ | |
Prior FYE Value of Awards Determined to Fail to Meet Vesting Conditions During Covered FY (-) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
Compensation Actually Paid Determination |
| $ |
| $ | |
| $ | |
| $ | |
| $ | |
Pay vs. Performance Narrative Disclosure
The Company’s Compensation Committee reviews a variety of Company-wide and individual factors to link executive compensation actually paid with Company and executive performance. To promote strong pay-for-performance orientation when setting executive pay levels, the Compensation Committee considers the Company’s absolute and relative total shareholder return, short- and long-term business outlook, including net income and revenue, and the broader market environment.
The following section provides a description of the relationships between the Company’s total shareholder return relative to a peer comparator index, as well as compensation actually paid relative to the Company’s total shareholder return, net income, and revenue over the last four completed fiscal years.
Compensation Actually Paid vs. TSR
Compensation Actually Paid vs. Net Income
Performance Metrics to Link Executive Compensation Actually Paid with Company Performance
In the most recently completed fiscal year, revenue was the only performance metric utilized to link executive compensation actually paid to Company performance. In 2024, executive annual incentives were earned dependent on total Company revenue achievement and executive equity compensation incentives were issued exclusively in the form of time-vested stock options.
See “Compensation Discussion & Analysis” above and published in the Company’s historical proxy statements for additional detail on executive compensation actions. Note, the value ultimately realized by the Company’s executive officers is still subject to significant variation over time (e.g., forfeiture of unvested awards prior to vesting and variation in stock price prior to award monetization).
Under Section 953(b) of the Dodd-Frank Act and Item 402(u) of Regulation S-K, we are required to provide the ratio of the annual total compensation of our Chief Executive Officer to the median of the annual total compensation of all employees of the Company (other than the Chief Executive Officer).
For 2024, the total compensation of the selected median employee was $95,497. The annual total compensation of Mr. Scavilla, our Chief Executive Officer, was $4,858,660. The resulting ratio of the annual total compensation of Mr. Scavilla, our Chief Executive Officer, to the median of the annual total compensation of all employees was approximately 51 to 1.
Our pay ratio was calculated in accordance with Item 402(u) of Regulation S-K. To identify the median employee, we used the following methodology: (i) we collected payroll data of all employees globally, whether employed on a full-time, part-time, temporary or seasonal basis as of December 31, 2024; (ii) we applied an exchange rate as of December 31, 2024 to convert all international currencies into U.S. dollars; and (iii) we used cash compensation paid to our employees during 2024 as our consistently applied compensation measure.
After identifying our median employee, we calculated total 2024 compensation for our median employee and the total compensation of Mr. Scavilla, our Chief Executive Officer, in accordance with the requirements of Item 402(c)(2)(x) of Regulation S-K, which includes base pay, overtime pay, bonuses, stock option awards, and the Company’s matching contribution to the employee’s 401(k) plan. We added the dollar value of insurance premiums paid by the Company to the annual total compensation of our median employee and our Chief Executive Officer.
We believe our methodology, assumptions and estimates above are reasonable given our employee population. Because the SEC rules for identifying the median employee and calculating the pay ratio allow companies to use different methodologies, exemptions, estimates and assumptions, our pay ratio disclosure may not be comparable to the pay ratio reported by other companies.
The following table sets forth certain information regarding the beneficial ownership of our common stock as of March 31, 2025 by: (i) each director; (ii) each of our named executive officers; (iii) all of our executive officers and directors as a group; and (iv) all those known by us to be beneficial owners of more than five percent of our Class A common stock or Class B common stock. The information in the table regarding those known to us to be beneficial owners of more than five percent of our Class A common stock is provided as of December 31, 2024.
Beneficial ownership is determined according to the rules of the SEC. A person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power of that security, including options that are currently exercisable or exercisable within 60 days of March 31, 2025. Except as indicated by the footnotes
below, we believe, based on the information furnished to us, that the persons named in the table below have sole voting and investment power with respect to all shares of Class A common stock and Class B common stock shown that they beneficially own, subject to community property laws where applicable.
Common stock subject to stock options currently exercisable or exercisable within 60 days of March 31, 2025, are deemed to be outstanding for computing the percentage ownership of the person holding these options and the percentage ownership of any group of which the holder is a member but are not deemed outstanding for purposes of computing the percentage of any other person.
Unless otherwise indicated, the address of each beneficial owner listed in the table below is c/o Globus Medical, Inc., 2560 General Armistead Avenue, Audubon, PA 19403.
|
|
|
|
|
|
|
| ||||||||
| Class A Common Stock | Class B Common Stock | Percentage of Voting | ||||||||||||
Name of Beneficial Owner | Shares |
| % | Shares |
| % | Power† | ||||||||
Directors and Executive Officers: |
|
|
|
|
|
|
| ||||||||
David C. Paul(1)(2) | 697,917 |
| * | 22,258,997 |
| 99.2% | 66.2% | ||||||||
David D. Davidar(3) | 861,492 |
| * | – |
|
| * | ||||||||
Daniel T. Lemaitre(4) | 36,875 |
| * | – |
|
| * | ||||||||
Ann D. Rhoads(5) | 186,634 |
| * | – |
|
| * | ||||||||
Daniel T. Scavilla (6) | 318,750 |
| * | – |
|
| * | ||||||||
James R. Tobin (7) | 77,916 |
| * | – |
|
| * | ||||||||
Robert A. Douglas (8) | 78,255 |
| * | – |
|
| * | ||||||||
Stephen T. Zarrilli (9) | 101,250 |
| * | – |
|
| * | ||||||||
Keith W. Pfeil (10) | 119,582 |
| * | – |
|
| * | ||||||||
Kelly G. Huller (11) | 195,416 |
| * | – |
|
| * | ||||||||
John A. DeFord, Ph.D. (12) | 36,828 |
| * | – |
|
| * | ||||||||
Leslie V. Norwalk, Esq. (13) | 37,669 |
| * | – |
|
| * | ||||||||
Daniel J. Wolterman(14) | 45,275 |
| * | – |
|
| * | ||||||||
All current directors and executive officers of Globus Medical Inc. as a group (13 persons)(15) | 2,793,859 |
| 2.5% | 22,258,997 |
| 99.2% | 66.8% | ||||||||
Other Stockholders: |
|
|
|
|
|
|
| ||||||||
The Vanguard Group, Inc. (16) | 11,277,722 |
| 10.0% | – |
|
| 3.3% | ||||||||
BlackRock, Inc.(17) | 10,636,609 |
| 9.4% | – |
|
| 3.2% | ||||||||
Janus Henderson Group plc(18) | 6,614,812 |
| 5.9% | – |
|
| 2.0% |
† Percentage total voting power represents voting power with respect to all shares of our Class A and Class B common stock, as a single class. Each holder of Class B common stock is entitled to ten votes per share of Class B common stock and each holder of Class A common stock is entitled to one vote per share of Class A common stock on all matters submitted to our stockholders for a vote. The Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of our stockholders, except as may otherwise be required by law.
*Less than 1%.
(1)Consists of 22,258,997 shares of Class B common stock outstanding, 26,042 shares Class A common stock outstanding and 671,875 shares of Class A common stock, as to which Mr. Paul holds sole voting power and sole dispositive power, issuable
upon exercise of options exercisable within 60 days of March 31, 2025. The Class B common stock includes 20,867,524 shares Mr. Paul owns jointly with his wife, as to which Mr. Paul holds shared voting power and shared dispositive power, 1,562,573 shares held by the Paul Family Irrevocable Trust U/A 4/6/10, and 171,100 shares held by the Sonali Paul Children’s Irrevocable Trust. Excludes 171,100 shares of Class B Common Stock held by the David C. Paul Children’s Trust in which Mr. Paul disclaims beneficial ownership.
(2)The business address for this stockholder is Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, PA 19403. The ownership information is based solely on a Schedule 13G/A filed with the SEC on February 14, 2024 by David C. Paul and Sonali Paul.
(3)Consists of 685,242 shares of Class A common stock outstanding and 176,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025. Includes 465,012 shares Mr. Davidar owns jointly with his wife, 165,967 shares held by the Davidar Family Irrevocable Trust U/A 8/6/09 and 3,000 shares beneficially owned by the Berachah Foundation and over which Mr. Davidar has voting power.
(4)Consists of 36,875 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(5)Consists of 35,384 shares of Class A common stock outstanding and 151,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(6)Consists of 318,750 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(7)Consists of 77,916 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(8)Consists of 2,005 shares of Class A common stock outstanding and 76,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(9)Consists of 101,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(10)Consists of 119,582 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(11)Consists of 195,416 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(12)Consists of 15,578 shares of Class A common stock outstanding and 21,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(13)Consists of 16,419 shares of Class A common stock outstanding and 21,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(14)Consists of 24,025 shares of Class A common stock outstanding and 21,250 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(15)Consists of (i) 804,695 shares of Class A common stock and 22,258,997 shares of Class B common stock beneficially owned by the current directors and executive officers, and (ii) 1,989,164 shares of Class A common stock issuable upon exercise of options exercisable within 60 days of March 31, 2025.
(16)The business address for this entity is 100 Vanguard Blvd, Malvern, PA 19355. The ownership information is based solely on a Schedule 13G/A filed with the SEC on February 13, 2024 by The Vanguard Group, Inc.
(17)The business address for this entity is 55 East 52nd Street, New York, NY 10022. The ownership information is based solely on a Schedule 13G/A filed with the SEC on February 5, 2025 by BlackRock, Inc.
(18)The business address for this entity is 201 Bishopsgate EC2M 3AE, United Kingdom. The ownership information is based solely on a Schedule 13G/A filed with the SEC on February 14, 2025 by Janus Henderson Group plc.
Our Audit Committee is responsible for reviewing and approving or ratifying any related-party transaction reaching a certain threshold of significance. In the course of its review and approval or ratification of a related-
party transaction, the Audit Committee considers, among other things, consistent with Item 404 of Regulation S-K, the following:
•the nature and amount of the related person’s interest in the transaction;
•the material terms of the transaction, including, without limitation, the amount and type of transaction; and
•any other matters the Audit Committee deems appropriate.
Any member of the Audit Committee who is a related person with respect to a transaction under review will not be permitted to participate in the deliberations or vote respecting approval or ratification of the transaction. However, such director may be counted in determining the presence of a quorum at a meeting of the Audit Committee that considers the transaction.
The Company is not aware of any transaction since January 1, 2024, or any currently proposed transaction, in which the Company was or is to be a participant and the amount involved exceeds $120,000, and in which any related party has or will have a direct or indirect material interest.
Delinquent Section 16(a) Reports
Section 16(a) of the Exchange Act requires directors, individuals designed by the Board as “officers,” under Section 16(a). and beneficial owners of more than 10% of our Common Stock to file with the SEC reports of ownership and changes in beneficial ownership of our Common Stock. We believe, based upon our review of such reports filed with SEC and representations of the relevant individuals that, for the fiscal year ended December 31, 2024, all of the individuals filed their respective beneficial ownership and change in ownership reports with the SEC in a timely manner, other than two Form 4s by Messrs. Paul and Davidar, which were inadvertently filed late due to administrative error.
Stockholders interested in submitting a proposal for inclusion in our proxy statement for next year’s annual meeting must do so in compliance with our Bylaws and applicable SEC rules and regulations. Under Rule 14a-8 adopted by the SEC, to be considered for inclusion in our proxy materials for our 2026 annual meeting, a stockholder proposal must be received in writing by our Secretary no later than December 26, 2025. If the date of our 2026 annual meeting is moved more than 30 days before or after the anniversary date of this year’s meeting, the deadline for inclusion of proposals in our proxy statement will instead be a reasonable time before we begin to print and mail our proxy materials next year. Stockholder proposals for inclusion in our proxy materials for the 2026 annual meeting must include the information required by and otherwise comply with the requirements of Rule 14a-8.
In addition to stockholder proposals included in the Company’s proxy statement for the 2026 annual meeting, stockholders who comply with requirements under our Bylaws may present proposals for consideration or make nominations of persons for election as directors at the 2026 annual meeting. Our Bylaws require that, for business to be properly brought before an annual meeting by a stockholder, such stockholder must have given timely notice thereof, along with other specified material, in proper written form to the Company. Any stockholder wishing to bring any business including, but not limited to, the nomination of persons for election as directors, whether by inclusion of such business in our proxy materials or otherwise, before the 2026 annual meeting, must provide notice to the Company, not more than ninety (90) and not less than fifty (50) days before the annual meeting, such notice to be in writing by registered mail, return receipt requested, to our Secretary at our principal executive offices. We currently expect our 2026 annual meeting to be held on June 3, 2026, which would require that such
notice be provided by no later than April 14, 2026, although such date may change. With respect to nominations of persons for election as directors, the notice to our Secretary must contain or be accompanied by the information required by Section 2.14 of our Bylaws, which includes, among other things: (i) the name, age, business address and residence address of each person nominated; (ii) the class, series and number of any shares of common stock of the Company beneficially owned or owned of record by such person; (iii) the date or dates such shares were acquired and the investment intent of such acquisition; and (iv) all information relating to such person that is required to be disclosed in solicitations of proxies for elections of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected. Nominations of persons for election as directors and proposals for consideration must comply with all other requirements of our Bylaws, which are not set forth in their entirety in this proxy statement. Any such proposals will also need to comply with the various provisions of Rule 14a-8, which governs the basis on which such stockholder proposals can be included or excluded from Company-sponsored proxy materials, as described above. In addition to the other requirements set forth above, stockholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must comply with the additional requirements of Rule 14a-19(b) and provide notice of such solicitation by no later than April 7, 2026, although such date may change.
Any notice of a stockholder proposal or nomination of persons for election as directors that is received after the dates specified above will be considered untimely.
Finally, stockholders may make recommendations to our Nominating and Corporate Governance Committee of qualified candidates that such stockholder believes should be considered for nomination as a director by the committee. The Nominating and Corporate Governance Committee will give appropriate consideration to qualified persons recommended by stockholders for nomination as directors and will evaluate such qualified persons in the same manner as other identified candidates, when submitted in a timely manner and in compliance with the advance notice procedures in our Bylaws as set forth above.
All proposals, nominations of persons for election as directors and recommendations of candidates to the Nominating and Corporate Governance Committee should be addressed to Kelly G. Huller, our Corporate Secretary, at Globus Medical, Inc., Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, PA 19403, Attention: Legal Department.
Any stockholder who wishes to make such a proposal should obtain a copy of the Bylaws, which contain these and other requirements with respect to stockholder proposals and director nominations, including certain information that must be included concerning the stockholder and each proposal and nominee. Our Amended and Restated Bylaws were filed with the SEC as Exhibit 3.1 to our Form 10-Q, filed on May 2, 2019, and our Amendment to the Amended and Restated Bylaws was filed with the SEC as Exhibit 3.1 to our Form 10-Q, filed on August 4, 2021, and can be viewed by visiting our investor relations website at www.globusmedical.com. You may also obtain a copy by writing to Kelly G. Huller, our Corporate Secretary, at Globus Medical, Inc., Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, PA 19403, Attention: Legal Department.
Stockholders can access this Proxy Statement and our 2024 Annual Report (including our annual report on Form 10-K) via the Internet at www.proxyvote.com. Copies of these materials may be obtained without charge by writing to Globus Medical, Inc., Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, PA 19403, Attention: Investor Relations.
The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for Notices of Internet Availability of Proxy Materials or other Annual Meeting materials with respect to two or more stockholders sharing the same address by delivering a single Notice of Internet Availability of Proxy Materials or other Annual Meeting materials addressed to those stockholders. This process, which is commonly referred to as “householding,” potentially means extra convenience for stockholders and cost savings for companies.
This year, a number of brokers with account holders who are our stockholders will be “householding” our proxy materials. A single Notice of Internet Availability of Proxy Materials will be delivered to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once you have received notice from your broker that they will be “householding” communications to your address, “householding” will continue until you are notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in “householding” and would prefer to receive a separate Notice of Internet Availability of Proxy Materials, please notify your broker or us. You can make a request by contacting our Investor Relations Department by phone at (610) 930-1800 or by mail at 2560 General Armistead Avenue, Audubon, PA 19403 Attention: Investor Relations. Stockholders who currently receive multiple copies of the Notices of Internet Availability of Proxy Materials at their addresses and would like to request “householding” of their communications should contact their brokers.
The Board of Directors knows of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the Annual Meeting, it is the intention of the persons named in the accompanying proxy to vote on such matters in accordance with their best judgment.
|
|
|
| By Order of the Board of Directors, |
|
|
| |
| Kelly G. Huller Corporate Secretary |
|
April 25, 2025
A copy of our Annual Report (including our annual report on Form 10-K) for the fiscal year ended December 31, 2024 can be viewed by visiting our investor relations website at www.globusmedical.com. You may also obtain a copy by writing to our Investor Relations Department at Globus Medical, Inc., Valley Forge Business Center, 2560 General Armistead Avenue, Audubon, PA 19403, Attn: Investor Relations.
APPENDIX A
2021 EQUITY INCENTIVE PLAN, AS AMENDED
ARTICLE 1. PURPOSE .............................................................. 5
ARTICLE 2. DEFINITIONS AND CONSTRUCTION .................................... 5
2.1 “Administrator” .......................................................... 5
2.2 “Applicable Accounting Standards” ......................................... 5
2.3 “Applicable Law” ........................................................ 5
2.4 “Award” ................................................................ 5
2.5 “Award Agreement” ...................................................... 5
2.6 “Board” ................................................................. 6
2.7 “Change in Control” ....................................................... 6
2.8 “Code” ................................................................. 7
2.9 “Committee” ............................................................. 7
2.10 “Common Stock” ......................................................... 7
2.11 “Company” .............................................................. 7
2.12 “Consultant” ............................................................. 7
2.13 “Director” ............................................................... 7
2.14 “Disability” .............................................................. 7
2.15 “DRO” ................................................................. 7
2.16 “Effective Date” ......................................................... 7
2.17 “Eligible Individual” ....................................................... 7
2.18 “Employee” ............................................................. 7
2.19 “Exchange Act” .......................................................... 7
2.20 “Expiration Date” ......................................................... 7
2.21 “Fair Market Value” ...................................................... 7
2.22 “Greater Than 10% Stockholder” ............................................ 8
2.23 “Holder” ................................................................ 8
2.24 “Incentive Stock Option” ................................................... 8
2.25 “Misconduct” ............................................................ 8
2.26 “Non-Employee Director” .................................................. 8
2.27 “Non-Employee Director Compensation Policy” ............................... 8
2.28 “Non-Qualified Stock Option” .............................................. 8
2.29 “Option” ................................................................ 8
2.30 “Option Term” ........................................................... 8
2.31 “Performance Award” ..................................................... 8
2.32 “Performance Criteria” .................................................... 9
2.33 “Performance Period” ..................................................... 9
2.34 “Performance Stock Unit” ................................................. 9
2.35“Permitted Transferee” .................................................... 9
2.36 “Plan” .................................................................. 9
2.37 “Prior Plan” ............................................................ 10
2.38 “Prior Plan Award” ...................................................... 10
2.39 “Restricted Stock” ....................................................... 10
2.40 “Restricted Stock Units” .................................................. 10
2.41 “Securities Act” ......................................................... 10
2.42 “Shares” ............................................................... 10
2.43 “Stock Appreciation Right” ................................................ 10
2.44 “Stock Appreciation Right Term” ........................................... 10
2.45 “Stock Payment” ........................................................ 10
2.46 “Subsidiary” ............................................................ 10
2.47 “Substitute Award” ...................................................... 10
2.48 “Termination of Service” .................................................. 10
ARTICLE 3. SHARES SUBJECT TO THE PLAN ....................................... 11
3.1 Number of Shares ....................................................... 11
3.2 Stock Distributed ........................................................ 12
ARTICLE 4. GRANTING OF AWARDS ............................................... 12
4.1 Participation ............................................................ 12
4.2 Award Agreement ....................................................... 12
4.3 Limitations Applicable to Section 16 Persons ................................. 12
4.4 At-Will Employment; Voluntary Participation ................................. 12
4.5 Foreign Holders ......................................................... 13
4.6 Non-Employee Director Awards ........................................... 13
4.7 Stand-Alone and Tandem Awards .......................................... 13
ARTICLE 5. OPTIONS ............................................................. 13
5.1 Granting of Options to Eligible Individuals ................................... 13
5.2 Option Exercise Price .................................................... 13
5.3 Option Vesting .......................................................... 14
5.4 Manner of Exercise ...................................................... 14
5.5 Partial Exercise ......................................................... 14
5.6 Option Term ............................................................ 14
5.7 Qualification of Incentive Stock Options .................................... 14
5.8 Notification Regarding Disposition ......................................... 15
5.9 Substitute Awards ....................................................... 15
5.10 Modification, Extension or Renewal ........................................ 15
5.11No Disqualification ....................................................... 15
ARTICLE 6. RESTRICTED STOCK .................................................. 15
6.1 Award of Restricted Stock ................................................ 15
6.2 Rights as Stockholders .................................................... 16
6.3 Restrictions ............................................................. 16
6.4 Share Vesting ........................................................... 16
6.5 Repurchase or Forfeiture of Restricted Stock ................................ 16
6.6 Certificates for Restricted Stock ........................................... 16
6.7 Section 83(b) Election .................................................... 16
ARTICLE 7. RESTRICTED STOCK UNITS ........................................... 17
7.1 Grant of Restricted Stock Units ............................................ 17
7.2 Term .................................................................. 17
7.3 Purchase Price .......................................................... 17
7.4 Vesting of Restricted Stock Units .......................................... 17
7.5 Maturity and Payment .................................................... 17
7.6 No Rights as a Stockholder ................................................ 17
ARTICLE 8. PERFORMANCE AWARDS AND STOCK PAYMENTS .................... 18
8.1 Performance Awards ..................................................... 18
8.2 Stock Payments ......................................................... 18
8.3 Term .................................................................. 18
8.4 Purchase Price .......................................................... 18
8.5 Maturity and Vesting ..................................................... 18
ARTICLE 9. STOCK APPRECIATION RIGHTS ........................................ 19
9.1 Grant of Stock Appreciation Rights ........................................ 19
9.2 Stock Appreciation Right Vesting .......................................... 19
9.3 Manner of Exercise ...................................................... 19
9.4 Stock Appreciation Right Term ............................................. 20
9.5 Payment ............................................................... 20
ARTICLE 10.ADDITIONAL TERMS OF AWARDS ..................................... 20
10.1 Payment ............................................................... 20
10.2 Tax Withholding ......................................................... 20
10.3 Transferability of Awards ................................................. 21
10.4 Conditions to Issuance of Shares .......................................... 22
10.5 Forfeiture and Claw-Back Provisions ....................................... 22
ARTICLE 11.ADMINISTRATION .................................................... 23
11.1 Administrator ........................................................... 23
11.2Duties and Powers of Committee ........................................... 23
11.3 Action by the Committee .................................................. 23
11.4 Authority of Administrator ................................................. 23
11.5 Decisions Binding ....................................................... 24
11.6 Delegation of Authority ................................................... 24
ARTICLE 12.MISCELLANEOUS PROVISIONS ....................................... 25
12.1 Amendment, Suspension or Termination of the Plan ........................... 25
12.3 Approval of Plan by Stockholders .......................................... 27
12.4 No Stockholders Rights ................................................... 27
12.5 Paperless Administration .................................................. 27
12.6 Effect of Plan upon Other Compensation Plans .............................. 27
12.7 Compliance with Laws ................................................... 27
12.8 Titles and Headings, References to Sections of the Code, Exchange Act or Securities Act 28
12.9 Governing Law .......................................................... 28
12.10 Securities Law and Other Regulatory Compliance ............................ 28
12.11 Section 409A ........................................................... 28
12.12 No Rights to Awards ..................................................... 29
12.13 Unfunded Status of Awards ............................................... 29
12.14 Indemnification .......................................................... 29
12.15 Relationship to other Benefits .............................................. 29
12.16 Expenses ............................................................... 29
12.17 Escrow; Pledge of Shares ................................................. 30
12.18 No Obligation to Employ .................................................. 30
12.19 Insider Trading Policy .................................................... 30
GLOBUS MEDICAL, INC.
2021 EQUITY INCENTIVE PLAN
The purpose of the Globus Medical, Inc. 2021 Equity Incentive Plan (as it may be amended or restated from time to time, the “Plan”) is to promote the success and enhance the value of Globus Medical, Inc. (the “Company”) by linking the individual interests of the Non-Employee Directors, Employees, and Consultants to those of Company stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of Non-Employee Directors, Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. The Plan provides a mechanism through which the Company may grant equity and equity-based awards as well as cash bonus and other cash awards to Eligible Individuals.
The Plan is a successor to the Prior Plan (as defined below). No additional grants shall made under the Prior Plan after the Effective Date. Outstanding grants under the Prior Plan shall continue in effect according to their terms, consistent with the applicable terms of the Prior Plan.
Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates.
In addition, if a Change in Control constitutes a payment event with respect to any Award which provides for the deferral of compensation and is subject to Section 409A of the Code, the transaction or event described in subsection (a), (b), (c) or (d) with respect to such Award must also constitute a “change in control event,” as defined in Treasury Regulation §1.409A-3(i)(5) to the extent required by Section 409A.
The Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters relating thereto.
The Administrator, in its sole discretion but subject to Section 12.11 (if applicable), shall determine the effect of all matters and questions relating to Terminations of Service, including, without limitation, the question of whether a Termination of Service resulted from a discharge for Misconduct and all questions of whether particular leaves of absence constitute a Termination of Service; provided, however, that, with respect to Incentive Stock Options, unless the Administrator otherwise provides in the terms of the Award Agreement or otherwise, a leave of absence, change in status from an employee to an independent contractor or other change
in the employee-employer relationship shall constitute a Termination of Service only if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Holder’s employee-employer relationship or consultancy relationship shall be deemed to be terminated in the event that the Subsidiary employing or contracting with such Holder ceases to remain a Subsidiary following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off).