- GRI 102-1: Name of the organization
- GRI 102-2: Activities, brands, products, and services
- GRI 102-3: Location of headquarters
- GRI 102-4: Location of operations
- GRI 102-5: Ownership and legal form
- GRI 102-6: Markets served
- GRI 102-7: Scale of the organization
- GRI 102-8: Information on employees and other workers
- GRI 102-41: Collective bargaining agreements
- GRI 102-9: Supply chain
- GRI 102-10: Significant changes to the organization and its supply chain
- GRI 103-1: Management approach
- GRI 103-2: Management approach
- GRI 103-3: Management approach
- GRI 201-1: Direct economic value generated and distributed
- GRI 407-1: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
Edwards was established as an independent public company in 2000, and since then the company has grown to more than $5 billion in revenue in 2021 with product sales in approximately 100 countries. We are dedicated to the development of medical technologies that improve both patient outcomes and speed of recovery. Our technologies include transcatheter and surgical heart valve therapies and critical care technologies, such as:
- Transcatheter Aortic Valve Replacement (TAVR) – In partnership with physicians worldwide, Edwards continues to lead the development of minimally-invasive heart valve technologies enabling a streamlined procedure with excellent outcomes, rapid discharge and improved quality of life for patients with aortic stenosis. Through significant investment in technology advancement and clinical evidence, Edwards strives to further expand the treatment options for patients with aortic stenosis.
- Transcatheter Mitral and Tricuspid Therapies (TMTT) – Edwards is making significant investments in the development of a differentiated portfolio of therapy options designed to treat mitral and tricuspid valve diseases.
- Surgical Structural Heart (Surgical) – Edwards is committed to being the partner of choice for cardiac surgeons and helping transform patients’ lives by advancing surgical structural heart innovations. Edwards is the world’s leading manufacturer of tissue heart valves and surgical heart valve repair therapies, which are used to treat a patient’s diseased heart valve.
- Critical Care – Edwards is a world leader in advanced hemodynamic monitoring systems used to measure a patient’s heart function and fluid status in surgical and intensive care settings. Its complete hemodynamic portfolio helps clinicians make proactive clinical decisions and plays an important role in enhancing patient recovery.
Every year, Edwards Lifesciences continues to innovate life-saving therapies. In 2021, Edwards Lifesciences introduced several products for commercial use.
- Chinese sales initiated for the INSPIRIS RESILIA aortic surgical valve
- Japanese approval of the MITRIS RESILIA Mitral Valve
- Japanese approval to begin treating patients at low surgical risk with the SAPIEN 3 valve
- FDA clearance for Hypotension Prediction Index software for noninvasive Acumen IQ Cuff
- FDA approval for the use of the Edwards SAPIEN 3 transcatheter valve with the Alterra adaptive prestent (SAPIEN 3 with Alterra) for patients with severe pulmonary regurgitation
2021 Sales by Product Line
- Transcatheter Heart Valve Therapy
- Surgical Structural Heart
- Critical Care
- Transcatheter Mitral and Tricuspid
2021 Sales by Geographic Region
- United States
- Rest of World
Edwards is incorporated in Delaware and headquartered in Irvine, California, USA. We operate major manufacturing facilities in the United States, Puerto Rico, the Dominican Republic, Costa Rica, Singapore and Ireland. We also have a significant employee presence at regional locations in Europe, and Japan, with an office in Ireland where a manufacturing facility was opened in 2021 with plans to increase the workforce to 850 people in the coming years. None of our North American employees are represented by a labor union. In various countries outside of North America, we interact with trade unions and work councils that represent a limited number of employees.
Edwards by the numbers
|Total Number of Operations||65 (7 manufacturing locations)|
|Total Number of Employees as of December 31, 2021 (Including Part-Time and Temporary Employees)||15,700|
|Global Employees by Gender in 2021||59% Female
Across the U.S. and international markets, our customers include physicians, medical professionals, hospitals and group purchasing organizations. In 2021, we derived 57 percent of our sales from the U.S. and 43 percent from international markets.
Our primary direct materials suppliers provide:
- Bovine pericardial tissue
- Contract manufacturing
- Electronic assemblies and cables
- Extruded tubing and extrusions
- Injection molded components
- Packaging materials
- Precision machining components
We source about 70 percent of our manufacturing materials from key and strategic suppliers. We only add suppliers if new technology or capability is required for our business and not already present in our supplier base. New suppliers undergo a thorough due diligence process, including screening for adverse conditions or events. We prioritize partnerships with suppliers headquartered in countries that enforce stringent standards and regulations to help reduce risks of non-compliance in our supply chain. For example, we source bovine pericardial tissue exclusively from the U.S. and Australia. Our largest indirect suppliers provide telecommunication services, food and catering services, office supplies, uniforms, lab products and cloud software. Please see our topic disclosures and governance map for more on Supply Chain management.
External awards and recognition received for 2021:
- Most Sustainable Companies (Barron’s)
- Management Top 250 (Wall Street Journal)
- America's Most Responsible Companies (Newsweek)
- America’s Most Just Companies “JUST 100” (JUST Capital/Forbesmagazine)
- Top 100 Companies Supporting Healthy Families and Communities (JUST Capital)
- World’s Most Ethical Company (Ethisphere)
- America’s Best Large Employers (Forbesmagazine)
- Best Employers for New Graduates (Forbesmagazine)
- World's Top Female-Friendly Companies (Forbesmagazine)
- Trendsetter in Corporate Political Disclosure and Accountability (CPA Zicklin Index)
We use a Governance Map to show the process used to establish accountability for each material topic in one overarching, interactive graphic. Each section describes who is involved when we set, execute and communicate our strategy for each of our material topics.
Please click on any of the seven categories to review our governance structures and practices.
Our Audit and Compensation and Governance Committees, and the Board of Directors as a whole, are responsible for developing Edwards’ corporate governance strategy.
Our Corporate Secretary stewards our corporate governance efforts and represents the Board of Directors during engagement calls with shareholders. A representative from the Board of Directors, the Presiding Director, sometimes participates in calls with the shareholders and closely collaborates with the Corporate Secretary in advance of and during the calls. Shareholder feedback informs corporate governance evaluation. The Board of Directors reviews the shareholder feedback reports and incorporates feedback into their considerations when reviewing governance strategy.
On a quarterly basis, the Corporate Secretary reviews current best practices, analyzes the impacts of governance changes on our business and advises the Board of Directors on considerations relating to governance and cybersecurity questions, challenges or feedback.
- The Edwards Board of Directors has two committees – the Compensation and Governance
Committee and the Audit Committee. Their charters can be found on
our website. They oversee
execution of our corporate governance and sustainability strategy throughout the year.
The Executive Leadership Team, Investor Relations, the office of the Corporate Secretary, and the office of the Chief Responsibility Officer collaborate to execute Edwards’ corporate governance strategy
Edwards’ Information Security team executes the company’s cybersecurity strategy and has the support needed to enact key initiatives in a timely and expedited manner using a risk-based approach. Edwards’ Chief Information Officer updates the Chief Financial Officer on a monthly basis, the Executive Leadership team and the CEO receive quarterly updates, and the Board of Directors receives periodic updates.
Edwards evaluates corporate governance personnel using compensation mechanisms such as awarding long-term incentives. To evaluate our Board of Directors, our Compensation Committee submits recommendations to our CEO who evaluates individuals based on their performance management objectives. Additionally, we view our stock performance as a way in which our strategy is being evaluated by shareholders.
Our Board and ELT are incentivized to promote best corporate governance practices through performance management objectives which influence compensation. Additionally, our Board conducts self- and peer-evaluations annually that are prepared for and tailored to each Board member by the General Counsel.
EEdwards communicates corporate governance efforts with stakeholders through the annual Proxy Statement and other securities filings with the Securities and Exchange Commission (SEC). Edwards educates employees on corporate governance information through the Titanium book.
Our SVP, Chief Responsibility Officer oversees the Corporate Sustainability function and Sustainability Council and communicates routinely with our Board, ELT members, employee events and sustainability speaking engagements outside the company. Additionally, the Sustainability Council publicly communicates corporate governance initiatives through our Sustainability Report
The Board is presented with the status of stakeholder engagement and feedback during the quarter in which the feedback was obtained. Shareholder outreach on corporate governance, executive compensation and sustainability occurs at least twice a year. The Board reviews feedback, evaluates best responses, discusses reasonable approaches and responds appropriately on behalf of the company. The 2022 Proxy Statement details how the Board has responded to stockholder feedback over the year and has changed our governance profile.
Stakeholders can communicate governance concerns by contacting investor relations or the office of the Corporate Secretary and raising concerns during one of the semi-annual outreach campaigns. Our CEO, CFO and SVP, Investor Relations, and members of our Executive Leadership Team, reach out to shareholders quarterly in addition to regular institutional stakeholder engagements. Our Investor Relations team and Corporate Secretary collaborate when feedback is received. During some of the engagement sessions, our Presiding Director participates after receiving training.
Health & Safety
- Members of the Executive Leadership Team (ELT) and Global EHS &
Facilities Engineering team (GEHS team) collaborate to develop
Edwards’ EHS strategy which is subject to approval by the CVP, Global Supply
Chain and the CEO.
The Sr. Director of Engineering, a member of the GEHS team, re-evaluates the strategy annually and produces an annual EHS report. This report is shared with the business unit leaders and the CVP, GSC who provides critical updates to the CEO. Our CEO shares updates on EHS performance with the Board of Directors annually and as needed if issues arise.
Every five years, members of the GEHS team update EHS strategies based on benchmarking, industry standards and leading sustainability frameworks. Edwards aligns our EHS strategy and disclosures to the Global Reporting Initiative, Dow Jones Sustainability Index survey, CDP (Climate), and the Task Force for Climate-Related Disclosures.
Reporting Structure, Roles and Responsibilities
The Global EHS Team reports as part of the Global EHS & Facilities Engineering function under our Corporate Vice President of Global Supply Chain (GSC). The Global EHS Team is tasked to drive standardization and continual improvement across the GSC. The Global EHS Team serves as an integral part of Edwards’ sustainability initiatives, with the VP of Engineering, Global EHS, serving as a core team member of the Corporate Sustainability Council. Each Edwards manufacturing plant is supported by its own local management and EHS team.
The Global EHS & Facilities Engineering function develops EHS policies and procedures appropriate for Edwards’ global operations. These include global policies on EHS risk management, reducing accidents and preventing pollution. The Sr. Director of Engineering, Global EHS & Facilities Engineering , a member of the Global EHS team, then develops plant strategies based on EHS performance, reviewed by the CVP, GSC and CEO. Each Operating Unit EHS function develops additional tailored policies and procedures appropriate to its activities and local regulations, needs and cultural attributes.
Executive Leadership and representatives from the GEHS team approve plant-level requirements. The Facility EHS teams and the plant managers are responsible for ensuring that the EHS policy is followed at each facility.
Removing Conflicts of Interest
Edwards Global EHS and Manufacturing Plant EHS are maintained as separate entities accountable to different functions under Edwards Global Supply Chain. This separation ensures transparency and objectivity when evaluating and reporting the regulatory compliance of manufacturing operations, where the majority of Edwards EHS compliance risk and sustainability opportunities exist. While Global EHS reports through Global Supply Chain, the EHS policies and standards developed under Global EHS apply to all of Edwards employees and operations, such as policies on maintaining compliance, preventing injuries and reducing pollution. Edwards locations also develop site specific EHS policies and procedures appropriate to local regulations or cultural attributes, which are consistent with and meet the overall requirements of our Global EHS standards.
Our CEO is evaluated annually for his role in achieving our strategic long-term Aspirations; EHS is as an integral part of Edwards’ Aspiration to excel as a Trusted Partner with our stakeholders and community. The bonuses of the Sr. Director of Engineering, Global EHS & Facilities Engineering, Sr. Director of Global EHS and the VP of Corporate Services are based upon policy execution. Edwards includes EHS criteria in performance reviews for relevant employees and incentivizes performance using recognition, rewards and compensation.
Through our “Ask Mike” Channel, the Corporate Services team receives employee and vendor EHS feedback and questions for our CEO. GEHS team leadership and Corporate Services draft answers to these inquiries that the CEO reviews before publishing all questions and answers on Edwards’ internal website.
Any employee may report a grievance related to EHS practices anonymously through Edwards’ Speak-Up program and Integrity Hotline. All grievances made through the Global Integrity Program are reported through Edwards’ Chief Responsibility Officer (CRO). External persons may submit EHS-related concerns through Edwards’ Global Integrity Program. If Edwards receives feedback, the CRO reviews it and directs it to GEHS leadership who investigate, document findings, and return it to the CRO who then determines whether further action is needed.
Edwards uses several methods to engage and communicate EHS information and progress with stakeholders: public reporting, our “Ask Mike” channel, grievance mechanisms and employee training.
Edwards communicates its EHS progress via our annual Sustainability Report and EHS report. Additionally, our Environmental Health & Safety policy and performance commitments are included in Edwards’ Titanium Book of Global Business Practice Standards.
Please see our EHS report for details on our EHS-specific employee training. Every plant conducts employee and contractor orientation that contains EHS information and safety training for their position.
Setting Our Strategy
Our CEO and Chief Responsibility Officer (CRO) collaborate to set Edwards’ Ethics & Compliance and Corruption & Bribery strategy. Our CEO sets the tone while the CRO drives the strategy. They both oversee fostering a strong ethical culture and advancing a best-in-class compliance program. The Board of Directors approves and oversees the program.
Our CRO oversees our Global and Regional Ethics and Compliance Teams, is a member of our Senior Leadership Team and has primary responsibility for Ethics & Compliance and Corruption & Bribery. Our CRO reports to the CEO and the Audit Committee of our Board of Directors.
The Corporate Compliance Committee (CCC), chaired by the CRO, is comprised of executive team members, including business unit leads and functional heads, who are responsible for supporting the CRO in oversight and implementation of an effective compliance program. The Regional Compliance Committees (RCC) include regional senior leaders and are chaired by a regional compliance officer.
The Global Ethics and Compliance team proposes corporate compliance goals which are discussed with and approved by the Executive Leadership Team (ELT). Progress on goals are discussed by the CRO with the ELT and Audit Committee of the Board, and by regional compliance officers (RCOs), who support the compliance committees and ethics teams, with the RCC.
Performance and Monitoring
Our Global Business Practice Standards, known as the “Titanium Book,” are publicly available on our website. Any changes to the Titanium Book must be approved by the CCC, ELT and the Board. The CRO and the Ethics and Compliance Teams perform compliance risk assessments which drive future strategies
To continually improve our Ethics & Compliance and anti-Corruption & Bribery program, the CRO and regional compliance officers work closely with global and regional medical device industry associations and legal consultants to stay abreast of, engage with and incorporate any new developments such as industry codes of conduct, working guidelines or best practices. The Ethics and Compliance Teams monitor publicly available information about the Ethics & Compliance and anti-Corruption & Bribery performance of our peers and the CRO reports to the CCC, ELT and the Audit Committee of the Board.
Our Ethics and Compliance Teams measure our performance through many channels. One channel is the assessment of Edwards’ culture through our all professional employee annual compliance survey which measures trust, fear of retaliation and willingness to speak up. Our Ethics and Compliance Teams communicate with regional and corporate leadership and the CRO if any issues surface.
Implementing Our Strategy
Our Chief Responsibility Officer (CRO) oversees daily implementation and reports monthly to our Executive Leadership Team (ELT) and quarterly to the Audit Committee of our Board of Directors. Our Corporate Compliance Committee (CCC) provides support and guidance to the CRO. The Committee meets quarterly to discuss progress
In addition, our regional compliance officers chair Regional Compliance Committees (RCCs) that oversee compliance at a local level.
The Global Ethics and Compliance Teams monitor compliance policies and procedures and drive changes through system upgrades, training and education.
We require all employees, distributors and Board members to receive training on the Titanium Book. In addition, employees and distributors are required to certify to their commitment to complying with the Titanium book on an annual basis. Please see the Management Approach section of Ethics & Compliance for more detail.
Our CEO and CRO share a specific performance management objective (PMO) to “foster a strong ethical culture and advance a best-in-class compliance program”; this directly impacts their bonus compensation.
Edwards’ Aspirations include “Excelling as a Trusted Partner and Global Leader Through the Quality of Our Work”. Edwards expects all employees to practice our core competencies and this is codified as a criterion in our performance reviews. Our Ethics and Compliance Teams work with Human Resources to establish integrity-related performance criteria. Any violations or misconduct are communicated to both the offending employee and their manager for review and may be considered during the employees’ performance evaluation.
Communicating Our Progress
We communicate progress to all our stakeholders in our annual Sustainability Report.
The Regional Ethics and Compliance Teams educate our employees through in-person training, online training on our learning management system, compliance newsletters, email communications, meetings and calls.
In conjunction with Titanium Book certification, we survey professional employees annually on topics such as fear of retaliation and whether they have reported misconduct. In addition, the Ethics and Compliance Teams gather internal feedback through our Integrity Helpline, investigations, monitoring findings and risk assessments, the RCC and general employee communications.
The Ethics and Compliance Teams conduct a direct, personal follow up with all deviant survey responses and periodically follow up with all misconduct reporters until investigations conclude. They provide global and regional risk assessment results to the RCC and CCC and collaborate to develop risk-mediating action.
To track program effectiveness, the Ethics and Compliance Teams, in collaboration with ELT, develop metrics and compliance goals each year. Regional compliance officers gather data to measure these metrics and goals and send it to the Global Ethics and Compliance Team who aggregate and share findings with the RCCs and other leadership teams. The CRO also presents findings annually to the CCC, ELT and Audit Committee of the Board.
As a medical technology company, Edwards must comply with strict regulations regarding the design, development, manufacturing and distribution of our products and services. We must comply with regulations set by regulatory bodies all around the world, including the U.S. Food and Drug Administration (FDA), National Competent Authorities in the European Union and various international organizations.
With guidance from the Board of Directors, the CEO and the Senior Vice President of Quality (SVP of Quality) set Edwards’ Product Quality and Safety strategy, policies and targets. The SVP of Quality is responsible for evaluating company performance and aligning our strategy to relevant product safety regulations. Our SVP of Quality assesses product quality and safety data through a company-wide dashboard and provides quarterly updates to the Board of Directors and executive leadership.
The Vice Presidents of Quality for the Business Units and Regions (VPs of Quality) and VP of Quality Strategy and Execution report directly to the SVP of Quality and support the strategy development process. The quality team develops a centralized corporate quality strategy focused on quality control measures and global regulatory compliance. The VPs of Quality in the business units are responsible for product-level specifications to ensure compliance with applicable regulations.
Our SVP of Quality (CVP) is responsible for the development, implementation and maintenance of our Quality System.
The SVP conducts quarterly reviews with the CEO, the Executive Leadership Team and Board of Directors to inform them of significant quality issues. The reviews address opportunities to improve Edwards’ Quality System, policy and objectives. These ongoing assessments empower Edwards’ Vice Presidents of Quality, Business Units and Regions to implement changes and mandate corrective action. The Edwards Management Representatives, who report to the VPs of Quality for the Business Units and Regions, help communicate and disseminate the strategy to employees throughout the company.
Our Senior Vice President of Quality, our Vice President of Quality Strategy and Execution, and other Vice Presidents of Quality collaborate to establish a product quality performance dashboard comprised of 6-7 specific components. All Quality and Global Supply Chain personnel are evaluated based on the dashboard’s performance and achievement of the dashboard goals. All employees who report to the Vice Presidents of Quality are responsible for and evaluated by 6-7 specific criteria aligned to the dashboard.
Corrective Action Process
If a product fails to meet safety or regulatory requirements, a cross-functional team performs an in-depth assessment to determine whether a Field Corrective Action is needed. In the case of a product issue, the Field Corrective Action Team will reclaim the distributed product or contact the affected customer. This team includes the Senior VP of Quality, Regulatory and Clinical; Vice President of Product Safety (a former cardiothoracic surgeon); head of Quality Compliance; and the Quality Management Representative of the relevant business unit.
Employee Product Quality and Safety Training
Edwards requires every employee, regardless of department, to complete detailed quality training programs during our onboarding process. Beyond the fundamentals, training content and employee performance expectations are defined specifically for each role. Edwards also requires employees to undergo mandatory training on or to review pertinent procedural updates.
The Product Quality Teams, collaborates with our Research & Development departments and manufacturing team to monitor post-market product performance and manage a feedback loop to continually make product improvements. Additionally, physicians provide feedback on how we can develop our products to best meet their needs.
Edwards communicates our progress and engages our stakeholders through our Sustainability Report and our website. Additionally, we report to all major regulatory bodies around the world, including the National Competent Authorities. Complete information on recalls is available through the Food and Drug Administration’s (FDA) publicly available database for medical device recalls.
The Edwards Lifesciences Foundation (ELF) is structurally independent from Edwards Lifesciences’ business and plays a key role in Edwards Lifesciences’ philanthropic giving strategy. The strategic importance of giving back to the community through the Foundation’s work is set by the Foundation’s Chairman of the Board and Edwards’ CEO.
The Foundation’s Board of Directors sets the philanthropic strategy. The Board includes eight senior leaders at Edwards:
- Chairman and Chief Executive Officer
- Corporate Vice President and Chief Financial Officer
- Sr. Vice President of Medical Affairs of Transcatheter Heart Valves
- Corporate Vice President of Surgical
- Corporate Vice President of Human Resources
- Corporate Vice President of Critical Care
- Sr. Vice President and Associate General Counsel
- Sr. Vice President of Global Health Economic and Reimbursement, Transcatheter Heart Valves
The Foundation Board reviews the strategic plan annually to ensure that our philanthropic contributions leverage maximum global impact. The Executive Director of ELF develops the Foundation’s strategy with the Global Corporate Giving Team, with counsel and ultimate approval from the Foundation Board. The Foundation’s Officers and members of the Administrative Steering Committee (ASC), composed of 21 Edwards employees from around the world, also help set the global philanthropy strategy.
The Board also annually evaluates the Foundation’s cash grant giving goals and the impact of cash grants for the Foundation’s signature philanthropic initiative, Every Heartbeat Matters (EHM). EHM comprises ~70 percent of the Foundation’s annual cash grant budget. Every Q1, the Foundation Executive Director and the Global Corporate Giving team evaluate the prior year, gathering feedback from the Foundation Board of Directors, all ASC members, and non-profit partners, and make necessary changes to the applications and grant cycle process to improve operations for the following year.
To solicit feedback, we evaluate our EHM performance and ensure we are on target to achieve our goals, the Executive Director of the Foundation and the Global Corporate Giving team receives robust impact reporting from our partner non-profit organizations at the end of every year.
The Executive Director of the Foundation is responsible for leading the implementation of the philanthropic strategy. The Executive Director oversees both the Global Corporate Giving team, which is accountable for target achievement, and the Administrative Steering Committee (ASC), which help execute the philanthropic strategy by partnering with and supporting charitable organizations across the world.
The ASC and the Strengthen Our Community Committees, composed of employees from different teams and regions across the globe, work with the Global Corporate Giving team to encourage employees to engage with our global non-profit partners. All employees are responsible for maintaining our culture of charitable activity and giving. With support and leadership from Strengthen Our Communities committees, and the Global Corporate Giving team, employees engage in charitable activities with community organizations, donate cash and/or skills to a charity and encourage organizations to apply to the annual grant cycle of the ELF.
At select annual regional employee events, the Chairman, Foundation, Executive Director and the Global Corporate Giving team recognize outstanding Edwards employee volunteers. They are granted a ‘gift for giving’ — offering the opportunity to donate $1,000 from the Foundation to the charity of their choice.
Transparency is key to our Foundation — we disclose extensive philanthropy data on our website. The Foundation communicates our progress through our annual Sustainability Reports as well as our Philanthropy Reports. Both are posted on our website and the Philanthropy Report is placed in lobbies and gathering locations throughout Edwards’ buildings. We also provide the Annual Report to Shareholders and Philanthropy Report to each Foundation partner and new Edwards U.S. employees during orientation. All new employee orientations include information on the Foundation, the Strengthen Our Community volunteer programs and how to get involved.
The Global Corporate Giving team, the Administrative Steering Committee and the Board of Directors of the Foundation communicate Edwards’ philanthropic strategy and commitment with employees through regular All Employee Meetings, external conferences and community events, and at annual recognition events for the Foundation’s non-profit partners.
Additionally, the Edwards Chairman of the Board and CEO presents Foundation information during the annual shareholder meeting.
Feedback and Engagement Mechanisms
The Global Corporate Giving team uses internal communication platforms, social media platforms and external-facing public websites to both gather feedback from the public and employees and share information with the community. The Global Corporate Giving team responds to email, phone or online inquiries received by the Edward Lifesciences Foundation. The Executive Director and Global Corporate Giving team share compiled feedback and other important information with the Board during quarterly meetings.
The Global Corporate Giving team also participates in industry surveys to share data and help our peers conduct benchmarking.
At Edwards, human capital management encompasses the topics of employee attraction, recruitment, engagement, development, retention and diversity and inclusion.
Edwards’ leadership understands that our greatest assets are our employees and the unique knowledge and skills they bring to our work. Attracting, developing and retaining talent is fundamental to the success of Edwards. Edwards’s practice is to employ, develop and retain employees on the basis of merit, qualifications, potential and competence, without regard to an employee’s gender, race or any other protected characteristic. The Board of Directors, CEO and Executive Leadership Team help determine the company’s fair and equitable pay policy.
Edwards’ talent strategy begins at the top of our organization: our CEO has measurable and reportable Performance Management Objectives (PMOs) around talent, increasing diversity and building an inclusive culture. The Board updates the CEO’s PMOs annually and the CEO is accountable to the Board of Directors for making progress toward the goals. Every year, the Edwards Executive Leadership Team (ELT) establishes key operating drivers (KODs) that steer the company toward short, medium and long-term goals. The ELT then works together to identify strategic talent related imperatives that are critical in driving KOD success. Each strategic talent imperative is owned by an ELT member and an HR leader.
Diversity, Inclusion and Belonging
In 2020, Edwards created a new role of Senior Director, Diversity, Inclusion, and Belonging (DIB) responsible for the vision, leadership, and strategic planning of initiatives that promote belonging, equality, diversity, and inclusion as essential elements of our culture and Credo. This leader will develop and oversee programs to advance our commitment to belonging, cultural humility, and anti-racism; build and strengthen structures, policies, and practices to provide an environment where every member of our community, including patients, feels welcomed, valued, supported, and accepted. The Senior Director of DIB reports to the VP Talent Management & Learning.
ELT Leaders set and oversee the DIB strategy and support for our Employee Resource Groups (ERGs). Each ERG has an ELT sponsor and is led by Edwards employees. The strategy and governance structure for DIB includes an Executive Steering Committee and an Edwards Diversity Council. The Corporate Vice President of Human Resources and the Vice President of Quality and Regulatory lead the Executive Steering Committee, which also includes other ELT ERG Sponsors. The Director of Talent Management leads the Edwards Diversity Council, which includes the employees that manage the ERGs. The Executive Steering Committee nominates and approves the employee leaders of the ERGs. We aspire to continue to expand our ERG network which currently include the Network of Women, MultiCultural, Friends of Veterans Network, Generations, Rainbow Alliance and enAble.
Edwards demonstrates our commitment to employees by ensuring equitable and fair pay practices and by providing a work environment that recognizes each individual as an important member of a culturally diverse, global Edwards team. We aspire to be an employer of choice and do so through our culture, educational opportunities, competitive pay, benefits and other efforts.
Based on the KODs, cascaded from the company and CEO PMOs, the ELT and respective HR owners develop and execute initiatives for each strategic talent imperative. Initiative owners determine project direction, including resources involved, goals setting and milestones for success. The HR PMO office manages all strategic talent initiatives and goals to ensure alignment with business objectives and annual progress. The Corporate Vice President of Human Resources reviews strategic talent imperatives every quarter. The HR PMO office tracks the strategic talent imperatives as well as talent-related projects and global initiatives that incorporate two or more cross-functional teams.
The HR PMO office reviews all projects using the same criteria. A resource dashboard collects and relays information and updates on each of the key projects so that the HR Advisory Board and project teams can stay in close communication regarding direction and progress. The HR Leadership Team (HRLT) and additional members make up the Advisory Board and they measure success of completed projects against the initial timeline and deliverables. The Advisory Board reviews the status of all critical talent-related projects every two to three weeks depending on the activity. The Advisory Board also reviews a sampling of projects each meeting.
Edwards supports several professional development practices and programs for employees, including:
- The Edwards Talent Development Review (TDR) process assesses the strategic talent needs of the organization, measures current talent capabilities and provides support to employees in reaching their professional goals. People managers conduct TDRs for their direct reports to connect with employees, identify professional growth priorities and understand the best way to support the needs of their function and the team members.
- The CEO and Chief Human Resources Officer conduct a TDR with each ELT member on their respective organization annually. Information from the TDR informs managers on discussions with their employees on areas such as strengths/development needs, stakeholder feedback, succession and potential career paths.
- Edwards embraces the value of mentoring, and we continually work to expand formal and informal mentoring opportunities. This includes traditional mentoring, as well as additional approaches such as speed, circles, and flash mentoring.
To attract and recruit top talent, Edwards provides competitive compensation and benefits packages. With the support and involvement of our Board, the ELT and external consultants, we regularly review our pay practices and compensation structure for potential pay disparities across gender and race. Through this process, we can identify statistically significant pay disparities and determine a course of action on how they can be addressed.
Our Global Career Framework (GCF) provides role alignment, career pathways and ensures equitable pay. Through the GCF, all Edwards employees are slotted by job function and level into career bands based on duties and responsibilities. We follow the GCF to ensure internal equity and to align with external benchmarks to remain competitive in both individual contributor and leadership tracks. We annually benchmark global job grades and salary structures against similar positions in the market.
We assign every business group with a Human Resources Business Leader (HRBL). Employees can reach out to their corresponding HRBP for support and insight into the resources we offer and opportunities available.
- To communicate our Talent strategy and engage employees, Edwards uses several different methods.
To provide context around talent goals and explain global strategy to HR employees, our Corporate Vice President of Human Resources holds a quarterly virtual meeting. For employees at the senior manager level and above, we hold an annual HR Summit at our headquarters in Irvine, California. At the HR Summit, the Global HR leadership team reviews strategy updates and key projects. Our Corporate Vice President of HR also hosts hours where she is available for questions and discussions through our internal chat function. During these chat hours, HR employees can ask questions regarding any topic. We also send out a worldwide Human Resources newsletter that covers different programs and updates at the company, such as diversity and inclusion efforts
All Edwards employees are invited to share their feedback through regular employee surveys, known as myVoice. These surveys measure employee engagement and sentiment across a variety of dimensions, including quality, empowerment, and charitable activities. Edwards distributes the survey in multiple languages. This feedback helps us sustain and protect what we do well and respond to opportunities as they arise. Leaders at all levels review survey results and collaborate with their teams in order to take action.
Additionally, Edwards hosts ERGs to support and engage our employees. ERGs focus on employee inclusion and awareness, as well as networking and outreach. Each group hosts learning opportunities and events to strengthen the Edwards community and underscore our commitment to diversity and inclusion.
Edwards also maintains internal webpages to communicate our human capital management strategy. Edwards’ intranet site contains employee resources and, specifically, a Diversity and Inclusion site that includes tools and resources for our employees. The site provides an ERG launch kit for new ERG leaders.
Employees also have the opportunity to submit questions to our CEO through our Ask Mike channel and Speak Up helpline.
Our Audit and Compensation and Governance Committees, and the Board of Directors as a whole, are responsible for developing Edwards’ corporate governance strategy.
Our Corporate Secretary stewards our corporate governance efforts and represents the Board of Directors during engagement calls with stockholders. A representative from the Board of Directors, the Presiding Director, sometimes participates in calls with the shareholders and closely collaborates with the Corporate Secretary in advance of and during the calls. Stockholder feedback informs corporate governance evaluation. The Board of Directors reviews the stockholder feedback reports and incorporates feedback into their considerations when reviewing governance strategy.
On a quarterly basis, the Corporate Secretary reviews current best practices, analyzes the impacts of governance changes on our business and advises the Board of Directors on considerations relating to governance and cybersecurity questions, challenges or feedback.
To execute our GSC and Quality strategies, we ensure alignment on goals and the availability of resources with input from the Global Supply Chain Leadership Team (GSCLT). During this process, the GSCLT identifies and secures the resources needed to reach the goals for that year and reviews progress. The members of the GSCLT align their PMOs with those of the CEO, to ensure support of the broader direction of the business.
The GSCLT assigns a project lead to be responsible for each GSC initiative and drive it across the business. Each initiative has a sponsor from the GSCLT who reviews updates and ensures that the right team is in place to reach the objective.
To execute the strategy at the local level, supervisors/managers at all Edwards plants hold daily production meetings to review performance metrics from the previous day and week. This practice ensures leaders in all plants understand the overarching strategy and that they are active in executing daily changes necessary to reach goals.
To align strategy across Edwards, the GSC team has one GSCLT member in each business unit. Additionally, PMO Leads sit on the GSCLT and is primarily responsible for strategy development and execution for the GSC.
The Edwards GSC team works closely with our Quality team in setting and checking progress against goals. We also have a team that works directly with company Research and Development teams to ensure manufacturability of products and the successful integration into our supply chain at launch.
Monitoring External Suppliers
We have policies to monitor external suppliers and processes for engaging our partners in the greater Edwards supply chain strategy. Sustainability strategies of our strategic suppliers are reviewed for alignment with our sustainability strategy during Quarterly Business Reviews and any gaps are addressed. Within the Strategic Sourcing Team, there is an Advanced Sourcing Team and a Category Leadership Team. All Research and Development teams have Advanced Sourcing Team representatives to ensure Edwards selects the right suppliers during the product innovation process. Experts and category leads who own relationships with our external suppliers comprise our Category Leadership Team.
Internal Communication Practices
To align all Edwards supply chain employees on the goals and direction of the group, we post visuals of the Aspirations and strategies at all manufacturing sites. Every plant has an individual scorecard that tracks progress toward site-specific goals. Plant leadership updates the scorecards regularly to update all employees regarding performance and conduct regular Town Hall reviews to share key information.
Edwards hosts an annual two-day summit with all of the GSC directors to discuss the updated strategies. Each function of the supply chain holds a series of town hall meetings throughout the year, during which leaders roll out new projects or provide updates on existing projects. Managers conduct ongoing reviews of individual employee PMOs to monitor progress and alignment with overarching goals. Every employee has an individualized PMO outlining their role in contributing to the company strategy.
External Communication PracticesWe rely on our suppliers to help us create industry-leading therapies for cardiovascular disease. Our Responsible Supply Chain Policy outlines our expectations for suppliers, which include fair labor practices, environmental responsibility, workplace health and safety, ethical practices, protection of human rights, socially responsible behavior and legal compliance. We integrate supplier input in the design and manufacturing of new products by including supply chain employees on most research and development product teams.
To engage employees and suppliers in our strategic plan we hold supplier summits with our key suppliers, distribute key elements of the GSC vision and strategies, run a supplier portal and provide a scorecard to update suppliers on their performance against our expectations. A Change Management Group within GSC develops and publishes a quarterly newsletter that goes out across the global supply chain in both English and Spanish. The Change Management Group reports up through the GSC Head of Human Resources/Change Management.