Pharmaceutical CEO Salaries
GlaxoSmithKline chief's pay package more than doubles to £6.7m
Drug company insists Andrew Witty remains underpaid and plans rise to £10.4m to close 'competitiveness gap'
GlaxoSmithKline boss Sir Andrew Witty's pay package more than doubled to £6.7m last year – but the drugs group reckons he remains underpaid and has awarded him a new deal which could generate up to £10.4m this year.
Details of Witty's 2011 pay, revealed in the pharmaceutical company's annual report, show his salary and incentives payout doubled from £3m to £6.7m in 2011 after his £1m salary was bolstered by a £2m annual bonus and a £3.7m payout from a three-year long-term incentive plan.
But the company said it had "identified a significant competitiveness gap" in the pay of the chief executive and had decided to bolster the size of his long-term incentive plan from a maximum of £5m a year to £6m – some 600% of his salary. According to the company's calculations, this could hand Witty £10.4m in 2012 if he meets all the performance criteria.
Separately the newly knighted Witty's basic pay is also to rise, by 4%, in line with other staff.
In the annual report, Sir Crispin Davis, the non-executive director who chairs the remuneration committee, said that the committee was "mindful of its responsibility to pay appropriately but not excessively" but had been concerned about the "competitiveness gap" for Witty when measured against a range of UK companies such as Anglo American, Vodafone, Barclays, Standard Chartered and HSBC.
A number of global pharmaceutical companies are also used for the comparisons and the company said Witty's pay was still in the bottom quartile when compared with his pharmaceutical peers, even after the pay rise.
The company, which was the first in the UK to have its pay policies voted down in 2003 over a pay deal for Witty's predecessor Jean-Pierre Garnier, said it already has shareholder approval for the changes to the chief executive's pay deal as the company's existing schemes permit 600% of Witty's salary to be handed out in share awards. In 2011 he received £3.7m of a possible £5m.
The annual report also shows that Julian Heslop, the finance director who was replaced by former banker Simon Dingemans, was handed £945,000 in "compensation for loss of office" which took his total pay for 2011 to £2.7m. Dingemans took home £1.6m while Moncef Slaoui, who runs research and development, received $4.8m (£3.1m).
Davis acknowledged that Witty's pay had "increased significantly" from 2010, which he said "directly reflects our pay for performance policy". He argued that last year GSK had recorded its best total shareholder return – 25% –since the company was created just over a decade ago.
"The committee is very aware of the sensitive environment surrounding executive pay at a time of real economic challenge," Davis added.
A spokesman for the company said Witty's leadership had been "fundamental" to the performance of the company in the last three years.
Source : The Guardian
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Top 10 Pharma CEO Salaries of 2010
Welcome to our annual look at the biggest CEO in the pharma industry. Despite a year fraught with manufacturing issues and drug recalls, Johnson & Johnson CEO Bill Weldon takes the top spot, with $28.7 million in 2010 pay. And Novartis' Daniel Vasella grabs the number two spot thanks to a lucrative golden handshake. Next year we'll have to say goodbye to a few familiar faces that are making their final appearance on this list. Pfizer's Jeff Kindler won't be back next year, nor will Vasella or Richard Clark of Merck. All of these CEOs will be replaced by new executives that will appear on the list. For example, Ian Read, Pfizer's new CEO, earned more than $17 million last year, even though he didn't become CEO until Dec. 5. George Scangos, formerly of Exelixis and now Biogen Idec CEO, was paid $9.4 million last year--and he didn't come on board until more than halfway through the year.
Others are waiting, too. Allergan's David Pyott ($12.7 million), Bristol-Myers Squibb's Lamberto Andreotti ($11.8 million) and Baxter's Robert Parkinson ($11.5 million) were close to making the list. Click below to get all the details on the top 10 highest paid biotech and pharma CEOs of 2010.
1. Bill Weldon - J&J - $28.7M
2. Daniel Vasella - Novartis - $27M
3. Miles White - Abbott- $25.6M
4. Jeffrey Kindler - Pfizer- $24.7M
5. Richard Clark - Merck - $24.6M
6. Robert Coury - Mylan - $22.9M
7. Kevin Sharer - Amgen - $21.1M
8. James Mullen - Biogen Idec - $20M
9. John Lechleiter - Eli Lilly - $16.5M
10. John Martin - Gilead Sciences - $14.2M
Source : Fiercepharma
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Pharmaceutical CEO Salaries
Few statistics are as hotly debated as CEO pay reports. Investors, analysts, and the just plain curious all want to know how much the head honcho makes--and how one company's chief stacks up against another's. So here for your rubbernecking pleasure are the 17 highest-paid CEOs in Big Pharma. While the names themselves probably won't be a surprise, their pecking order might. For instance, the biggest drugmaker by sales--Pfizer--doesn't have the highest-paid executive, and one of the relatively small fry counts its chief among the top 10.
We've already ranked CEO pay at the industry's top five biotechs, but it's worth noting that if they had been included on this list, Amgen's Kevin Sharer and Genentech's Arthur Levinson would have ranked fifth and sixth behind Wyeth's Bob Essner. Genzyme's Henri Termeer made $14.6 million in 2007, coming in ahead of Merck's Richard Clark, and Gilead's John Martin made $10.8 million, slightly less than Roche's Humer.
For U.S. companies, FiercePharma's numbers are based on total compensation reported in their proxy statements. The numbers include base salary, bonus and "other" compensation in 2007. For overseas companies not required to file proxies in the U.S., we gleaned executive pay information from various press reports. Though we did as much due diligence as we could to make sure these reported totals were apples-to-apples comparisons, there's a chance we may have missed something. Feel free to let us know.
1. Miles White - Abbott - $33.4M
2. Fred Hassan - Schering-Plough - $30.1M
3. Bill Weldon - Johnson & Johnson - $25.1M
4. Bob Essner - Wyeth - $24.1M
5. Robert Parkinson - Baxter - $17.6M
6. Daniel Vasella - Novartis - $15.5M
7. Richard Clark - Merck - $14.5M
8. Frank Baldino - Cephalon - $13.5M
9. Sidney Taurel - Eli Lilly - $13M
10. Jeff Kindler - Pfizer - $12.6M
11. Jim Cornelius - Bristol-Myers Squibb - $11.3
12. Franz Humer - Roche - $11.1M
13. Robert Coury - Mylan - $8.5M
14. Jean-Pierre Garnier - GlaxoSmithKline - $6M
15. Werner Wenning - Bayer - $4.77M
16. David Brennan - AstraZeneca - $4.3M
17. Gerard Le Fur - Sanofi-Aventis - $3.27M
Source : FiercePharma
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