Dear Shareholders
2012 was a great year for Stryker. We chose a new team leader, ended the year with a solid, more balanced fourth quarter and, based on our efforts in 2012, we recently announced a bold and exciting acquisition of Trauson Holdings, a major value segment player in China that will greatly strengthen our position in the emerging markets.
How did we achieve all of this? Our people. Stryker has always been recognized for its dedicated, hardworking, caring employees who, day after day, continuously improve the products that help caregivers and patients enjoy a better tomorrow. Teams also need leadership, and Stryker has been equally fortunate to have had strong, compassionate, knowledgeable and respected chief executives. We are delighted that Kevin Lobo will carry this tradition forward as our new President and CEO.
Kevin has a broad and diverse 25-year business career that includes executive positions in general management and finance, with extensive international experience. He knows the healthcare markets well, he is a decisive, clear thinker, and he is very engaged with our employees.
During the search process – directed by Louise Francesconi, a Board member and Chair of our Governance and Nominating Committee – we evaluated Stryker's opportunities and challenges, scoured the marketplace for potential external candidates, evaluated internal talent, and enthusiastically chose Kevin, who has been with Stryker long enough to know its inner workings and results-oriented culture, but has plenty of outside experience to bring fresh ideas to the table. Kevin is off to a great start, and the Board is confident that he will meet and exceed the high expectations our shareholders place on leadership.
The Stryker Board believes that companies that excel over many years spend lots of time on strategy – looking closely at how their industries will evolve and then charting a course in challenging waters that builds on their strengths to increase value. The Board also knows that a good strategy requires successful executives to plan and implement it.
Accordingly, the Board appreciated the opportunity to work closely with the management team as the company crafted an impressive growth plan — a plan that recognizes the need for innovative, cost-effective healthcare products, utilizes our keen knack for innovation and creative solutions, and builds on the strong relationships we have established with caregivers. Everything we need is in place.
Before closing, I want to thank Curt Hartman, who served this company admirably for 23 years. With his vast operating experience and broad knowledge, he skillfully provided a smooth transition for Kevin, serving as interim CEO while remaining CFO from February 2012 until October 2012. We wish Curt all the best in the future.
Finally, let me acknowledge the incredible work of the Board this year on behalf of our shareholders. Corporate oversight of publicly traded, global companies is an exciting and challenging task. The line between oversight and managing is not always clearly defined, and can shift with changing circumstances.
Your Board clearly understands its role and never drifted from its implicit commitment to drive shareholder value, while balancing the needs of 22,000 terrific employees, the wonderful caregivers who use our products and services, our suppliers and, of course, all the patients who benefit from Stryker products.
We thank you, our shareholders, for the confidence and trust you place in all of us at Stryker as we work to drive value for your investment.
Sincerely,
