Karen Parkhill, the Chief Financial Officer (CFO) of Medtronic, is set to leave the medical device giant to join HP Inc. as its new CFO. Parkhill will take on her new role at HP starting August 5, succeeding Marie Myers, who recently moved to Hewlett Packard Enterprise.
Parkhill’s departure from Medtronic comes at a crucial time for the company as it navigates a turnaround strategy. Medtronic recently announced its decision to exit the unprofitable ventilator product line within its Patient Monitoring and Respiratory Interventions (PMRI) business. Despite this transition, Medtronic has reiterated its financial forecast for the fiscal year 2025, aiming to reassure investors amid the leadership change.
With over three decades of experience in finance, including her tenure as CFO for commercial banking at JPMorgan Chase & Co., Parkhill has held several high-profile leadership roles. She joined Medtronic in 2016 from Comerica and has been instrumental in steering the company through various financial strategies and challenges.
Parkhill’s move to HP comes as the PC industry is on the brink of recovery from a prolonged post-pandemic slump. HP CEO Enrique Lores recently highlighted the company’s focus on “AI PCs” as a significant growth driver, projecting that about 10% of HP’s PC sales will come from these advanced devices in the latter half of fiscal 2024. Parkhill’s appointment is expected to bolster HP’s financial leadership as the company navigates this pivotal phase.
Gary Corona, Medtronic’s Senior Vice President of Global Financial Planning and Analysis, will step in as interim CFO upon Parkhill’s departure. Medtronic is currently evaluating both internal and external candidates for a permanent CFO successor. Analysts have noted that while any CFO transition can introduce uncertainty, Parkhill’s move appears to be a strategic career decision rather than a sign of underlying issues at Medtronic.
Parkhill will receive a competitive compensation package at HP, including a base salary of $950,000, a $1.5 million signing bonus, and a target annual cash bonus of 135% of her base salary. This marks a notable increase from her compensation at Medtronic, where her base salary was $911,000 with a target cash bonus of 110%.
Parkhill’s extensive experience and leadership skills are anticipated to play a crucial role in HP’s ongoing transformation and growth strategies, particularly in leveraging new technologies and market opportunities.