17 Democratic Senators who voted FOR Obamacare now want a special deal (tax relief) – what do you think?

First, of course I am not opposed to anyone making money or making a substantial salary.   I admire success.   I think people should be rewarded for hard work, good products and good ideas.

My remarks last night ON THE RECORD at 10pm (and here on GretaWire) about the 17 Democratic US Senators now trying to get a ‘special tax break’ from Obamacare for the medical devices industry is about:

1/ the Senators’ collective hypocrisy (they voted for the tax increase when they voted for Obamacare…didn’t they read what they voted for?) and

2/ I don’t like the idea that because the medical device industry has the money for lobbyists that they get a special tax break from politicians that small businesses without lobbyists – or you – don’t get.  

I decided to look into the medical devices industry and get a sample – not exhaustive study – of how they are doing.  I don’t know the smaller ones so I looked at some of the big ones.

Is this industry falling apart financially which means we need to help them with a special tax deal since medical devices are so important to healthcare? or is this just another instance of one industry getting special favors from politicians?  

You tell me what you think..but you might want to review the sample information below before you post your thoughts: 


Company Profit and CEO Compensation


Covidien PLC

Boston Scientific Corp

Boston Scientific Corp


St Jude Medical Inc





Earnings (how this company defines profit or loss; company made a profit last quarter and last fiscal year)


Most recent quarter – FY 2013 Q2

Net sales $4.095 billion

Net earnings $646 million


FY 2012 – ended April 27, 2012

Net sales $16.184 billion

Net earnings $3.617 billion


[Source: Medtronic Investor Relations Quarterly Results http://phx.corporate-ir.net/phoenix.zhtml?c=76126&p=quarterlyEarnings]


CEO salary and compensation


Omar Ishrak – Chairman and CEO


Total Fiscal Year 2012 compensation $25.026 million


[Source: Medtronics 2012 Proxy Statement http://www.medtronic.com/wcm/groups/mdtcom_sg/@mdt/@corp/documents/documents/proxy-statement-012.pdf]




2./Covidien PLC


Net income (how this company reports profit)


FY 2012 (ended Sept 28, 2012)

Net sales: $11.852 billion

Net income $1.905 billion


[Source: Coviden Investor Relations Covidien Reports Fourth-Quarter and Fiscal 2012 Results http://investor.covidien.com/phoenix.zhtml?c=207592&p=irol-newsArticle&id=1756782]


CEO salary and compensation – 2011 compensation is most recent reported

Jose E Almeida – President and CEO

Total 2011 compensation $9.4 million


[Source: Coviden Investor Relations Schedule 14A http://investor.covidien.com/phoenix.zhtml?c=207592&p=irol-sec]




3./Boston Scientific Corp


Net Income (how this company reports profit or loss)


Most recent quarter – third quarter 2011

Net sales $1.735 billion

Net income: loss of $725 million


Full year 2011

Net sales: $7.622 billion

Net income: $441 million


[Source: Boston Scientific Corp Quarterly Results http://phx.corporate-ir.net/staging/phoenix.zhtml?c=62272&p=irol-quarterlyearnings11]


CEO Compensation


William Kucheman was CEO as of March 1, 2012. Michael F Mahoney is President and CEO as of December 2012. Below is the 2011 compensation for Kucheman and Mahoney as of the most recent proxy statement


William Kucheman: total 2011 compensation $4.7 million

Michael F. Mahoney: total 2011 compensation $11.8 million


[Source: Boston Scientific Corp 2011Proxy Statement http://phx.corporate-ir.net/staging/phoenix.zhtml?c=62272&p=irol-reportsannual]








Most recent quarter – 3Q 2012

Net sales: $2.052 billion

Net earnings: $353 million


Full year 2011 results

Net sales: $8.307 billion

Net earnings: $1.345 billion


[Source: Stryker earnings releases http://phx.corporate-ir.net/phoenix.zhtml?c=118965&p=irol-newsArticle&ID=1652073&highlight=]


CEO compensation


Stephen P MacMillan – Chairman, President and Chief Executive Officer

Total 2011 compensation: $9.5 million


[Source: Boston Scientific Group 2012 Proxy Statement http://phx.corporate-ir.net/phoenix.zhtml?c=118965&p=proxy]




5./St Jude Medical Inc




Most recent quarter – Third Quarter 2012

Net sales $1.326 billion

Net income: $176 million


Most recent annual – 2011

Net sales: $5.6 billion

Net income: $825.79 million


[Source: St Jude Medical Investor Relations http://phx.corporate-ir.net/phoenix.zhtml?c=73836&p=irol-fundIncomeA]


CEO compensation


Daniel J Starks – Chairman, President, and CEO

Total 2011 compensation: $6.6 million


[Source: ST Jude Medical Schedule 14A March 23, 2012 http://phx.corporate-ir.net/phoenix.zhtml?c=73836&p=irol-sec]