Why Shares of Smith & Nephew Fell 10.2% in October
Shares of British medical equipment manufacturer Smith & Nephew (NYSE: SNN) tumbled 10.2% in October, according to data provided by S&P Global Market Intelligence. Virtually all of the drop came on Oct. 21, when the company announced the surprise departure of CEO Namal Nawana, who had only been on the job for 18 months.
Nawana took a pay cut to join the U.K. maker of artificial joints: As the CEO of U.S.-based medical diagnostics company Alere, he made as much as $11.1 million a year. However, British rules regarding CEO pay are much more stringent than in the U.S.; Smith & Nephew's 2018 annual report lists his salary for the first seven months of his tenure as $2.9 million, including pension and benefits.
Artificial joints are one of Smith & Nephew's top products. Image source: Getty Images.
Source Fool.com
