Zimmer Biomet's CEO forgoes salary as the company's revenues drop due to COVID-19: 5 details

Spinal Tech

Zimmer Biomet CEO Bryan Hanson is giving up 100 percent of his salary as the company takes several measures to curb the financial impact of COVID-19.

Elective procedures across the U.S. are being postponed and canceled to stem the spread of COVID-19 as communities have stay-at-home orders. Healthcare organizations can also redistribute the PPE needed during elective surgeries to frontline workers caring for patients with the coronavirus.

Five things to know about Zimmer Biomet:

1. The company estimated first quarter revenues will drop 9.5 percent to 10.5 percent, and plans to announce first quarter financial results in May. It expects COVID-19 to negatively affect its second quarter financial report as well.

2. Zimmer Biomet is reducing the compensation of its entire leadership team, in addition to Mr. Hanson's full salary cut as it aims to maintain liquidity.

3. On the manufacturing side, Zimmer Biomet is taking steps to reinforce business continuity at its facilities and modulating manufacturing output.

4. Zimmer Biomet issued $1.5 billion of notes in two tranches due in 2026 and 2030, and used the net proceeds to repay $1.5 billion in outstanding notes due on April 1.

5. The company is donating PPE to local hospitals and nonprofit organizations as well as partnering with industry members and using 3D printing technology to produce critical components for face shields and ventilators. It is also providing monetary donations to multiple nonprofit organizations supporting COVID-19 initiatives.

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