Pfizer chief Ian Read's pay falls 23%
Pfizer, a leading pharmaceutical company in the US, said that net compensation of chief executive officer Ian Read declined 23% in 2015 driven by a drop in stock awards. The chief's net compensation amounted to $18 million in 2015, compared to $23.3 million in 2014. The net compensation in 2015 included a base pay of $1.9 million.
The company granted a stock award valued at $2.01 million to Ian Read in 2015, down from $6.45 million in 2014. However, the chief's bonus rose to $4.3 million in 2015 from $3 million in 2014. While, F.D' Amello, chief financial officer and executive vice president of business operations, received a total salary package of $6.7 million, down from $8.5 million in 2014.
Amello's base pay in 2015 increased to $1.3 million from $1.26 million in 2014. Amello received a stock award of $603K in 2015, down from $2.1 million in 2014. The drug maker increased Amello's 2015 bonus to $2.3 million from $1.3 million in 2014.
Meanwhile, M. Dolsten, president of research and growth worldwide, received a net compensation of $6.1 million, down from $7.3 million in 2014. His net compensation included a base salary of $1.2 million in 2015, compared to a base pay of $1.17 million in 2014. Pfizer granted him a stock award of $603K in 2015, down from $1.86 million in 2014. Dolsten's bonus increased to $1.85 million in 2015 from $1.3 million in 2014.
Other executives like G. Germano and J. Young received a total compensation of $6.8 million and $5.92 million respectively in 2015. The company granted a bonus of $1.85 million to Germano and $2.1 million to Young in 2015. The company announced the departure of Germano as president of global innovative pharma (GIP) business on February 8, 2016. He will be succeeded by Albert Bourla as the head of GIP business. After the completion of Allergan transaction, Bourla will control GIP business along with Vaccines, Oncology, and Consumer Healthcare businesses.
Meanwhile, Allergan has pledged to pay its executives' taxes after the close of the transaction with Pfizer. As a result, the company will pay a total of $86 million as taxes for it five executives, if they are terminated from their job. The net exit compensation package will total to $300 million, The salt Lake Tribune reports.
With the acquisition of Allergan, Pfizer will move its headquarters to Ireland from New York. In addition, the company expects this shift to trim its tax rate to 17% or 18% from its present rate of 25% as corporate taxes are lower in Ireland, as reported by THE WALL STREET JOURNAL.
Following the acquisition, Brent Saunders, chief of Allergan, will become the COO of the merged firm called Pfizer PLC. In this new role, Brent will report directly to Ian Read. The company's revenue increased by 7% during the fourth quarter driven by robust sales of new drugs.