Smith & Nephew CEO 650% PSP Award
Smith & Nephew CEO 650% PSP Award
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Key Points
1
Deepak Nath's 2026 PSP includes a maximum award of 323,728 ordinary shares priced at £12.744 each, with a 1 January 2026 to 31 December 2028 performance window and vesting on 15 March 2029; an initial 350% of salary top-up brings total 2026 PSP awards to 650% of salary, and a restricted-share top-up of 25% of salary lifts total restricted awards to 150%. Dividend equivalents are paid on vested shares.
2
Extended shareholder engagement involved investors representing about 70% of issued share capital, with initial AGM support below 80%; the board decided to implement the remuneration policy and PSP as originally approved while pledging ongoing dialogue and expanded narrative disclosures in the 2026 annual report.
3
Nate Folkert, President of Orthopaedics, received a PSP grant over 117,933 ordinary shares priced at £11.0265, vesting in March 2029 after performance over 2026–2028, and includes dividend equivalents.
4
Folkert also received a restricted share award over 67,164 ordinary shares under the Restricted Share Plan 2024, calculated at the same £11.0265 price, vesting in equal annual tranches over three years subject to continued employment and performance.
5
The Folkert awards include dividend equivalents, and the PSP disclosure notes that an additional number of shares equivalent to the dividend payable per vested share will be issued during the relevant performance period.
Smith & Nephew is moving forward with its 2026 pay plan after shareholders raised concerns about executive compensation. CEO Deepak Nath will receive a Performance Share Plan award worth up to 650% of his salary — the company's largest grant to date — despite initial shareholder backing falling short of 80% at the May annual meeting TipRanks.
The board decided to implement the plan anyway, following extended talks with investors representing roughly 70% of the company's shares. Smith & Nephew pledged to give shareholders more detailed explanations of pay decisions in its 2026 annual report TipRanks.
How Deepak Nath's Record Award Works
Nath's 2026 package includes two parts. First, a Performance Share Plan grant worth up to 323,728 shares priced at £12.744 each. Second, a restricted-share award worth 150% of his salary Kalkine Media. Together, these top-ups total 650% of his base pay — double the company's typical PSP award level.
The shares vest in March 2029, after a three-year performance test running from January 2026 through December 2028. If Nath stays with the company and performance targets are met, he also receives dividend equivalents — extra shares equal to dividends paid during the vesting window Kalkine Media.
Shareholder Push-Back Led to Extended Talks
At Smith & Nephew's May annual meeting, only 79% of shareholders voted for the remuneration policy — just shy of the typical 80% threshold that signals strong approval TipRanks. Rather than back down, the board engaged major investors representing 70% of shares over the following weeks.
The company stuck with its original pay plan but promised greater transparency. Starting with the 2026 annual report, Smith & Nephew will provide expanded narrative explanations of how it sets executive pay and links it to company performance TipRanks.
Orthopaedics Leader Nate Folkert Gets Dual Awards
Nate Folkert, who leads Smith & Nephew's Orthopaedics division, received two separate share grants in 2026. His Performance Share Plan award covers 117,933 shares priced at £11.0265 each. He also got a restricted-share award of 67,164 shares at the same price TipRanks.
Both awards vest in March 2029 after a three-year window. The PSP shares depend on Folkert meeting performance targets and staying with the company. The restricted shares vest in three equal annual chunks, also tied to continued employment and performance TipRanks.
All Share Grants Include Dividend Sweeteners
Every executive share award at Smith & Nephew now includes dividend equivalents. When vested shares are issued in March 2029, employees get extra shares equal to the dividends that would have been paid during the three-year vesting period TipRanks. This boosts the total value without raising the headline grant size.
The awards fall under UK Market Abuse Regulation, which requires public disclosure of all senior executive pay decisions ADVFN. Smith & Nephew filed formal notifications with regulators to comply with these transparency rules ADVFN.
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