Top 5 Compensation Packages in FY21 for Laboratory Tool Company CEOs

Top 5 Compensation Packages for FY21 for Laboratory Tool Company CEOs

The median amount of the top five compensation packages for CEOs of laboratory tool companies was $16 million last fiscal year. Although executive compensation is based a variety of factors, revenues grew double digits for all five CEOs’ companies last fiscal year, boosted by lab reopenings and the return of industrial and applied markets. For Thermo Fisher Scientific and Danaher, the two companies on the list with significant COVID-related revenue, pandemic-related sales remained vibrant as COVID-19 testing demand was solid and revenues for products used in manufacturing COVID-19 vaccines and therapies posted strong gains.

CompanyExecutiveTitleFY21 Total Compensation ($M)
Thermo Fisher ScientificMarc N. CasperPresident and CEO$21.2
DanaherRainer M. BlairPresident and CEO$17.2
Agilent TechnologiesMichael R. McMullenCEO$16.0
Bio-TechneCharles R. KummethPresident and CEO$15.9
IlluminaFrancis A. deSouzaCEO$14.3

Executive compensation can be divided into short-term and long-term compensation. Short-term compensation consists of an executive’s salary, bonus and incentives. Long-term compensation consists of stock grants and options. In fiscal 2021, the executives on the list had a larger proportion of their pay in long-term compensation. The median share of long-term compensation was 71% compared to 29% for short-term compensation. Excluded from the calculations for our list are stock and option awards vested during the year.

Number 1: Marc N. Casper, Chairman, President, CEO, Thermo Fisher Scientific

At over $20 million, Mr. Casper recorded the biggest total compensation package in FY21 among lab tool company CEOs. This is not surprising given Thermo Fisher Scientific’s domination of the lab tool industry. In 2021, company revenues reached $39.21 billion, a 22% increase. Nonetheless, Mr. Casper’s total compensation amount was actually 20% lower than in 2020. Although his short-term compensation gained 14%, his long-term compensation declined 23%. But not counted in total compensation was the $21.3 million in stocks vested during the year.

Number 2: Ranier M. Blair, President and CEO, Danaher

In his first full year as President and CEO of Danaher, Mr. Blair pulled in more than $17 million in total compensation. This was a hefty 65% increase for him, led by an over 70% jump in long-term compensation. The increase in short term compensation was also impressive, showing a more than 50% gain. As the world’s second-largest lab tools company, Danaher posted annual revenues of $29.5 billion in annual revenues, up 32%.

Number 3: Michael R. McMullen, CEO, Agilent Technologies

Mr. McMullen ended fiscal 2021 with an executive compensation package topping $15 million. The 17% increase was led by a 91% boost in short-term compensation. This was primarily due to an 170% increase in cash incentives. But long-term compensation grew much slower, expanding just 2%. The company’s fiscal 2021 revenues rose 18% to $6.32 billion.

Number 4: Charles Kummeth, President and CEO, Bio-Techne

Unlike Thermo Fisher Scientific, Danaher and Agilent, Bio-Techne has annual revenues of less than $1 billion. Nonetheless, Mr. Kummeth made it to fourth on the top 5 compensation list, with over $15 million in short-term and long-term compensation combined. With a 38% boost, this was just behind Mr. Ranier for the fastest growth in total compensation among the top 5. The bulk of the increase came in the form of short-term compensation, which grew 6%. Furthermore, Mr. Kummeth realized gains from stock options and vested stocks of over $35 million.

Number 5: Francis A. deSouza, President and CEO

Mr. deSouza recorded more than $14 million in total compensation last year, up 22% from 2020. This included an 93% jump in short-term compensation. Contributing to this gain was an over 250% increase in incentives. Compared to his short-temp compensation, long-term compensation showed a more modest 10% increase. Illumina had an especially strong year, posting 40% sales growth to $4.5 billion.

An extensive review at executive compensation in the laboratory tool industry is available in the May 16, 2022 issue of Instrument Business Outlook (IBO).