By Chelsey Dulaney
United Therapeutics Corp. has slashed its top executive's
long-term pay after coming under shareholder pressure this summer
to rein in its compensation.
United Therapeutics also promoted its chief operating officer,
Roger Jeffs, to co-chief executive, to serve alongside current
chief executive Martine Rothblatt starting Jan. 1.
Ms. Rothblatt has agreed to take a 70% cut to her annual
long-term incentive package after proxy advisors Institutional
Shareholder Services Inc. and Glass, Lewis & Co. criticized her
compensation as to high this summer. Ms. Rothblatt's compensation
increased $30.2 million from 2012 to 2013 after receiving a
1-million-share options grant.
In lieu of up to a million shares a year in fully-vested stock
options a year, determined by the company's market cap growth, Ms.
Rothblatt will now receive a long-term incentive plan of 300,000
cash-settled share tracking awards next year.
Companies have faced rising criticism in recent years over their
executive pay packages, which many say rely too heavily on large
stock options and aren't tied closely enough to the company's
performance.
Coca-Cola Co. announced earlier this year that it would overhaul
its executive-compensation plan, scaling back stock options and
shifting to more cash-based performance awards after facing
pressure from shareholders including Warren Buffett.
United Therapeutics also named David Zaccardelli, the company's
manufacturing chief since 2008, to take over Mr. Jeffs' role as
chief operating officer.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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