Pfizer CEO 2011 Compensation Valued At $25 Million, Up 44% Vs 2010
March 15 2012 - 5:21PM
Dow Jones News
Pfizer Inc. (PFE) Chief Executive Ian Read received compensation
valued at $25 million for 2011, up 44% from 2010, largely
reflecting his promotion to the drug maker's top executive post in
December 2010.
Read's compensation also was based partly on Pfizer exceeding
targets set by the board's compensation committee for 2011 revenue,
adjusted earnings and cash flow from operations, according to a
proxy statement filed Thursday with the U.S. Securities and
Exchange Commission.
The compensation committee cited Read's role in pursuing
divestitures of noncore businesses and in returning cash to
shareholders through dividends and share repurchases. Pfizer shares
rose 23.6% for 2011.
Read, 58 years old, took over as Pfizer CEO in December 2010
when Jeffrey Kindler unexpectedly left the company. Read added the
title of chairman of the board in December 2011.
For 2011, several elements of Read's compensation increased
considerably. Stock awards rose to $5.7 million from $2.7 million,
while the value of option awards surged to $6.9 million from less
than $1 million, according to the proxy.
Read's salary was $1.7 million and his non-equity incentive plan
compensation was $3.5 million. Other elements of his compensation:
$6.9 million change in pension value and non-qualified deferred
compensation earnings, and $319,000 in all other compensation.
For 2012, Read's salary will increase to $1.75 million, Pfizer
said in the proxy.
Read, who joined Pfizer in 1978, has accumulated pension
benefits with a total present value of about $27.4 million. In
addition, the aggregate balance of Read's non-qualified deferred
compensation is $8.2 million.
Pfizer Chief Financial Officer Frank D'Amelio received total
compensation valued at $7.7 million for 2011, versus $6.5 million
in 2010. Mikael Dolsten, president of worldwide research and
development, received 2011 compensation valued at $7 million, up
from $5.9 million for 2010.
Pfizer also disclosed in its proxy that its board compensation
committee has made certain changes in executive pay in response to
a disappointing shareholder advisory vote on executive compensation
at last year's annual meeting.
The company has modified the terms of performance share awards
so that they'll align more closely with performance, and has
provided more a detailed explanation of its performance metrics,
according to the proxy.
The compensation committee attributed the disappointing advisory
vote at last year's annual shareholder meeting to dissatisfaction
with the separation agreement with Kindler in late 2010. That
agreement included a cash severance payment of $4.5 million and
other compensation.
-By Peter Loftus, Dow Jones Newswires; 215-982-5581;
peter.loftus@dowjones.com
Pfizer (NYSE:PFE)
Historical Stock Chart
From May 2024 to Jun 2024
Pfizer (NYSE:PFE)
Historical Stock Chart
From Jun 2023 to Jun 2024