The group said the 58-year-old will continue to lead the company until a successor is found.
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"Since I joined the company in 2011, we have transformed Smith & Nephew into a more focused, efficient and innovative business and I am proud of the value we have created for all of our stakeholders,” Bohuon said in a statement.
“Looking ahead to the next long-term phase of growth, I have decided to announce my retirement plans now, providing ample time to identify a successor and ensure a smooth transition.”
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Bohuon had his pay cut by 38% to US$3.32mln for 2016 after falling short of his performance targets and the London-listed group reduced his cash bonus by 10% as the company did not reach its financial objectives.
The move came as Smith & Nephew overhauled its remuneration policy following a backlash from shareholders.