August 8, 2022

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FIERCE: 2020 Top 15 CEO in biopharmaceutical companies on income

FIERCE: 2020 Top 15 CEO in biopharmaceutical companies on income

 

FIERCE: 2020 Top 15 CEO in biopharmaceutical companies on income.   For many pharmaceutical companies in 2020, the focus of their work is COVID-19.

Last year, the industry developed at an astonishing speed and established an unprecedented partnership to deliver vaccines and therapeutic preparations in the fastest time.

The COVID-19 epidemic has affected the salary of the CEOs of these pharmaceutical companies, but COVID-19 is not the whole story of the 2020 executive salary.

 

In 2020, the salary of more than one CEO will set the industry’s high standard in the next few years.

As in 2019, no female executives made the list this year. The new CEO of Vertex Pharmaceuticals, Reshma Kewalramani, will earn $9.11 million in 2020, about half of her predecessor’s income, while Glaxo Smith Kline’s Emma Walmsley’s salary has dropped from approximately £8.1 million ($11.25 million) to £7 million ( US$9.7 million). At the same time, executives from Sanofi, Roche and Novartis were absent from the list for the second year in a row.

FIERCE: 2020 Top 15 CEO in biopharmaceutical companies on income

Overall, the companies participating in this COVID-19  fight provide their CEOs with the highest compensation packages, and at least two will surely trigger a conversation about executive compensation in the next few years. Regeneron’s Leonard Schleifer earned more than $135 million and topped the list, followed by George Yancopoulos, the company’s top scientist, with an annual salary of just over $134 million.

 

1. Leonard Schleifer

Last year, Regeneron awarded CEO Len Schleifer a five-year stock award in advance, and will not issue more stock awards until December 2025.

FIERCE: 2020 Top 15 CEO in biopharmaceutical companies on income
COVID-19 participants have formulated some lucrative compensation plans in 2020, but the compensation of the CEO of Regeneron Pharmaceuticals will certainly set a high standard of CEO salary for pharmaceutical companies in the next few years.

CEO Leonard Schleifer   2020 salary includes a lot of salary composition comparable to other biopharmaceutical companies: 1.5 million US dollars salary, plus 3.5 million US dollars in cash incentive compensation. However, Schleifer received a staggering $130 million in stock awards, an increase of more than 2500% from the stock earnings he received last year. Chief Science Officer, Dr. George Yancopoulous, earned $143.8 million in revenue this year, including $130 million in compensation and stock awards.

Why is there a surge in salary? In its 2021 power of attorney, Regeneron stated that last year the company’s two top executives were given five-year stock awards and will not issue more stock awards until December 2025. The company stated that the awards are based on “the company’s ambitious plan to achieve the overall goal of total shareholder return within five years.”

 

2. Stanley Erck

Novavax CEO Stanley Erck received a salary of $48 million last year, enough to make him second in our annual rankings.

For some people, Novavax CEO Stanley Erck, the COVID-19 epidemic provides him with a golden opportunity. Erck said this spring that before the COVID-19 outbreak, Novavax had $80 million in cash and a “financial operating period” of approximately six months. Biotech companies with decades of history have not received any product approvals, and have experienced some severe R&D setbacks over the years.

At the beginning of last year, Novavax was fully committed to its COVID-19 vaccine program, and now there are promising vaccine candidates about to be unveiled. Although Novavax has not yet received approval for the vaccine, the biotech company has been busy building its manufacturing network and negotiating supply agreements.

Thanks to his leadership, Erck received a salary of $48 million in 2020. His total compensation includes a salary of $65,171, and more than $46.8 million in stock and option awards. Erck also received a cash prize of approximately $600,000. As a result, his salary exceeds that of CEOs of all large pharmaceutical companies, but the salary of Regeneron CEO Len Schleifer is as high as $135 million.

 

3. Alex Gorsky

Johnson & Johnson’s Alex Gorsky salary has increased by 17% in 2020, even though the company has neither achieved its sales target nor its adjusted profit target.

As a result of leading the work of the global healthcare giant Johnson & Johnson, Alex Gorsky has been well paid. He is usually one of the highest paid pharmaceutical company CEOs, and due in part to the company’s response to the COVID-19 pandemic, Gorsky has achieved substantial growth in 2020.

Gorsky’s total compensation is $29.58 million, which is an increase of 17% over his 2019 compensation package. Although the company missed sales and adjusted revenue targets, his salary increase has increased. Johnson & Johnson pointed out that the medical equipment department was the main reason for the decline in sales during the pandemic.

As the COVID-19 pandemic spreads around the world, hospitals have to cancel selective treatments to give priority to treating patients with COVID-19 disease, and many patients have stopped treatment altogether. Including Johnson & Johnson, this has had a huge impact on medical device companies, and during the COVID-19 epidemic, pharmaceutical companies have basically performed well in other sales areas.

Johnson & Johnson, as a company with businesses in these areas and consumer health care, is in a very advantageous position to deal with this storm.

The company’s total revenue by 2020 is US$82.58 billion, which is far below its operating target of US$86.2 billion. But this figure is the same as the revenue of $82 billion in 2019, which marks the drugmaker’s victory in the challenge of the COVID-19 epidemic. As for Gorsky, his total salary includes salaries of $1.65 million, stock and option awards totaling more than $18 million, cash incentive compensation of more than $3 million, and the value of his pension jumped to $6.43 million.

 

4. Robert Coury

Robert J. Coury, the executive chairman of Viatris, has revenues of US$29.06 million in 2020.

After suffering many setbacks in the COVID-19 epidemic, the large-scale merger of Mylan and Pfizer’s Upjohn division finally ended in November, creating a new generic drug giant, Viatris.

The former CEO of Mylan, Robert J. Coury, was appointed as executive chairman in April to pilot the company through pandemic-era mergers. For this, he made a fortune. In fact, Coury’s total compensation for 2020 is US$29.06 million, which is more than five times the total income of Viatris’ new CEO Michael Goettler, who’s compensation is US$5.47 million.

 

5. Richard Gonzalez

AbbVie (AbbVie) CEO Richard Gonzalez reaped the victory in the research and development pipeline, because the company faces the exclusivity that Humira is about to lose.

AbbVie CEO Richard Gonzalez faces a daunting task: He must prepare the company so that it is expected to launch its immunology drug Humira’s biosimilar competition in the United States in 2023, and filling this gap is progressing smoothly.

In May of last year, AbbVie officially merged with botulinum toxin manufacturer Allergan and increased its annual sales by approximately US$15 billion, reducing Humira’s share of the company’s total revenue from 58% in 2019 to 43% in 2020 .

The company also designated new immunological drugs Skyrizi and Rinvoq as Humira’s successors. Those two medicines did not disappoint. By 2020, the sales of these two drugs have greatly exceeded analysts’ expectations, and their total sales reached 2.32 billion US dollars.

As a result, Gonzalez’s salary in 2020 has increased. AbbVie’s CEO salary in 2020 is $24 million, an increase of 11% from the $21.6 million in 2019. His long-term equity award jumped by US$3.3 million to US$14.4 million, and his cash incentives reached US$4.9 million. His basic salary has risen slightly from 1.65 billion US dollars last year to 1.69 billion US dollars.

 

6. David Ricks

2020 salary: $23.7 million
2019 salary: $21.28 million
Change: +11%

Dave Ricks has seen considerable salary growth during his four years as CEO of Lilly.

Eli Lilly’s CEO David Ricks’s salary increased by millions of dollars. Now, for the second year in a row, he has been among the top 10 CEOs of the world’s highest paid biopharmaceutical companies.

Since taking over as CEO in early 2017, Ricks’ salary has climbed from US$15.84 million that year to US$23.7 million last year. Before becoming CEO, he had worked in the company for more than 20 years.

Why will compensation increase? Eli Lilly stated in its annual agency document that Eli Lilly exceeded its revenue target and almost achieved our revenue target. It received emergency nominations from the FDA for two treatments for COVID-19, received first approval for the cancer treatment Retevmo and insulin Lyumjev, and received additional use of the psoriasis drug Taltz, the cancer treatment Cyramza, and the rheumatoid arthritis drug Olumiant.

In terms of research and development, Eli Lilly has carried out three phase three studies and 17 phase one studies. The speed of research and development of new drugs has also surpassed industry benchmarks.

 

7. Kenneth Frazier

Merck’s outgoing CEO Ken Frazier received $22.09 million in the 2020 final salary package.

A year ago, Merck & Co. CEO Ken Frazier didn’t seem to go anywhere. The company has just cancelled a policy requiring the CEO to retire at the age of 65. This move seems to be favored when Frazier pursues the company’s future in Keytruda.

However, the New Jersey-based drugmaker announced in February that Franzier (the only black chief executive officer of a large pharmaceutical company) will retire this summer after holding the top position at Merck for nearly ten years. Robert Davis, Merck’s chief financial officer, will serve as the new helm.

At the same time, Frazier’s cash reward was $2.2 million, which was a drop of more than 50% compared to 2019. Deferred compensation and pension value fell by 55% to $2.3 million, accounting for the majority of Frazier’s salary decline in 2020.

 

8. Timothy Walbert

 

Horizon’s Tepezza and Krystexxa’s continued success helped raise CEO Tim Walbert’s salary by more than 50%.

Horizon CEO Timothy Walbert’s salary increase for 2020 is 56%, the third highest increase on the list. Previously, there were two drugmakers active in the development of COVID-19 drugs. His $22 million bonus put him on the list for the first time in several years.

In 2020, the company’s progress mainly revolves around Tepezza. Thyroid eye disease treatment was launched in January and quickly became popular, with annual sales of 820 million US dollars. Horizon called it “one of the most successful rare disease drugs in history” in its proxy statement.

 

9. Pascal Soriot

Several proxy advisers urged AZ shareholders to vote against raising the salary of CEO Pascal Soriot in 2021, even though investors approved the plan on May 11.

Despite leading the research and development of the COVID-19 vaccine and being one of the earliest authorized vaccines in the world, AstraZeneca has withstood the troubles of public relations. CEO Pascal Soriot often defends his company on the front line. . The company also reached its financial benchmark for the year, which paid off for Soriot.

The company’s board of directors said in its annual report that the British pharmaceutical company awarded Soriot a total of 15.45 million pounds ($21.52 million) to achieve its financial and scientific goals “under extremely challenging circumstances.” It also highlighted Soriot’s “inspiring leadership” in the company’s pandemic response.

Since 2019, his salary has remained unchanged at £1.29 million. At the same time, Soriot’s annual bonus was increased to £2.32 million, 90% of the allowable ceiling, half of which will be transferred to AstraZeneca’s stock within three years. The CEO of AZ also received another long-term reward of £11.06 million.

Investors are not satisfied with Soriot’s compensation plan. On the contrary, the acting consultant Glass Lewis and Institutional Shareholder Services (Institutional Shareholder Services) questioned AstraZeneca’s proposal to increase the maximum bonus and stock that Soriot can earn in 2021.

 

10. Albert Bourla

During 2020, Albert Bourla helped Pfizer to become a household name and to be at the forefront of the COVID-19 battle.

Albert Bourla’s second year as CEO is undoubtedly a historic year, as the company’s COVID-19 vaccine in cooperation with BioNTech has reached the finish line and has become one of the world’s leading initiatives to stop the COVID-19 epidemic. One.

According to the agency document in March, Pfizer’s CEO’s salary in 2020 is approximately US$21.03 million. His salary was $1.65 million, and he received $5.49 million in cash incentive compensation and approximately $14 million in Pfizer options vested over time.

 

11. Giovanni Caforio

Giovanni Caforio, CEO of Bristol Myers Squibb, has successfully integrated Celgene, and his 2020 salary reflects this.

In Giovanni Caforio’s sixth year as CEO of Bristol Myers Squibb, his salary exceeded the $20 million mark for the first time. Attributed this milestone to Caforio’s 21 years of work at the company, his long tenure at the company and his achievements in a year that he considered a successful year on the company’s board of directors. Benchmark disappointed.

In addition, BMS received FDA approval last year, and Celgene’s import of Zeposia for the treatment of multiple sclerosis and Onureg (for oral treatment of patients with acute myeloid leukemia after chemotherapy) received FDA approval. Reblozyl, also from Celgene, received its second approval for the treatment of anemia patients with myelodysplastic syndrome. The drug’s annual revenue in some sales is $274 million.

The main pillars of BMS will perform well in 2020. Revlimid, a multiple myeloma drug also from Celgene, generated $12.1 billion in revenue, an increase of 12% over the previous year. The use of blood thinner Eliquis has promoted the use of blood thinners to reduce the risk of coagulation in patients with COVID-19. Sales reached US$9.2 billion, an increase of 16% over the previous year.

Despite Opdivo’s disappointing sales of 7 billion U.S. dollars, down 3% from 2019, the anti-cancer drug received five approvals, including approval for first-line non-small cell lung cancer in combination with Yervoy, paving the way for a rebound.了基。 The foundation.

 

12. Robert Bradway

Robert Bradway, CEO of Amgen, firmly led the pharmaceutical company through the pandemic, and sales increased by 9% by the end of the year.

Robert Bradway, Amgen’s chief executive, responded to the epidemic by increasing sales in certain brands, increasing sales in others, and maintaining a generally stable attitude.

Bradway, the CEO of Amgen since 2012, has been raising pay for the past few years as the company has been struggling to balance the biosimilar challenges of Neulasta, Neupogen and Epogen with the sales growth of new products Balance. These new drugs include the psoriasis drug Otezla, which Amgen acquired from Celgene, and the company’s own brands, including the migraine treatment drug Aimovig and the osteoporosis drug Evenity.

The company reported that Amgen’s sales exceeded US$25.4 billion in 2020, an increase of 9% year-on-year, thanks to a 15% increase in sales that partially offset the price drop and the impact of the COVID-19 pandemic.

Bradway’s $20 million or more compensation plan includes a base salary of $1.64 million and a stock and option award of $14.4 million.

 

13. Daniel O’Day

Gilead Sciences paid Daniel O’Day a generous remuneration to increase its franchise in oncology.

When Daniel O’Day took over as the head of Gilead Sciences in 2019, the company fell into a four-year revenue decline, from $32.6 billion in 2015 to $22.1 billion in 2018. O’Day achieved moderate growth with his help, reaching 22.4 billion USD in the year, and then reaching 24.7 billion USD in 2020.

The performance is similar to what O’Day achieved when he was a pharmacy supervisor at Roche, and Gilead’s goal was to provide a huge temptation to attract him to the market. In order to compensate him for his retirement plan after 30 years of working at Roche, Gilead invested a total of US$29.11 million in 2019.

Therefore, it is not surprising that O’Day sees his compensation package drop to $18.99 million in 2020. His salary is $1.7 million, and his incentive compensation is $4.7 million. He also received 1 million US dollars in other compensation, including 750,000 US dollars per year to compensate O’Day in Roche (Roche) pension. However, the equity awards he received totaled $18.5 million in his first year in office and reached $11.51 million last year.

 

14. Michel Vounatsos

Michel Vounatsos, CEO of Biogen, conducted an unexpected generic competition to reshape the multiple sclerosis drug Tecfidera and brought many other challenges.

Biogen CEO Michel Vounatsos’s 2020 salary does not look any different from his 2019 salary, rising only 3% to $18.66 million. He saw his stock award increase by US$1.54 million, but the cash bonus component of his compensation (specifically linked to 2020 performance) decreased by US$1.32 million from the previous year to US$2.57 million.

The company’s 2020 revenue fell by 6.5% to $13.44 billion. The company said it faces fierce competition from generic drugs.

 

15. Jean-Jacques Bienaimé

When the FDA received a surprisingly complete response letter on the company’s application for gene therapy for hemophilia A, BioMarin CEO Jean-Jacques Bienaimé suffered a major setback.

BioMarin CEO Jean-Jacques Bienaimé saw his salary cut in 2020, mainly because the company’s annual cash rewards were reduced, which is related to the financial performance of the biotech company, and 40% is related to the progress of the research and development Related.

In August, the US Food and Drug Administration issued a surprisingly complete response letter to the company’s application for valoctocogene roxaparvovec, which will be the first gene therapy for hemophilia A.

This setback caused BioMarin’s stock price to plummet, almost erasing the benefits of related development goals, which accounted for 20% of Bienaimé’s cash rewards. As a result, the CEO’s cash reward has fallen from US$2.32 million in 2019 to US$1.66 million. This dragged down his total compensation, even though his stock awards and salary increased.

 

 

FIERCE: 2020 Top 15 CEO in biopharmaceutical companies on income

(source:internet, reference only)


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