I’m really asking the question here, more than answering. If I knew all the reasons this diary would be titled, “The reason CEO pay is so high at pharmaceuticals.” I’ve published two detailed diaries here this spring after doing a great deal of research (to vastly different responses, might I add). This time I’m posting a diary closer to the beginning of the process. I’ve been looking Regeneron’s proxy and CEO Leonard S. Schleifer, M.D., Ph.D. received total disclosed compensation of nearly $42 million, and he also realized over $96 million in cashing in options.
Schleifer co-founded the company in 1988. And as at many biotechnology companies, the options were broadly granted. According to Hala Mirza, and quoted in the journal, http://blogs.wsj.com/... “Based on yesterday’s closing price, more than 580 [Regeneron] employees have become millionaires on Regeneron [stock] options alone. Every Regeneron employee receives options and we are proud that employees all share in the value created by our strong performance and important medicines.” Regeneron’s sales of vision loss drug Eylea have been outstanding, and the stock price is way up.
Pay is up at Vertex Pharmaceuticals as well, where Jeffrey Leiden’s pay went up from $13.1 million to $36 million. Both of these companies had significant increases in stock options. I also saw increased pay at Bristol-Myers Squibb. And one of the largest exercises of stock options was Gilead Science who gained $187 million in exercising previously awarded stock options.
I’m trying to figure out if there are industry-wide things that explain these packages. I know there are tons of experts on the healthcare industry here who might have insights.
Any thoughts?
Also fine to use this time to think about how much healthcare you could buy for $96 million.