Healthy Skepticism Library item: 7198

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Big Payday for Pfizer's McKinnell
The Street.com 2006 Dec 22
http://www.thestreet.com/_yahoo/newsanalysis/pharmaceuticals/10329360.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Abstract:

Hank McKinnell may be leaving Pfizer but he certainly isn’t going away empty handed.
The former chairman and chief executive of the drug giant will exit the company he’s called home since 1971 with a compensation package worth roughly $200 million — an especially generous parting gift considering he led Pfizer through a nearly 40% decline in its stock price.

McKinnell, who became CEO in 2001, was replaced suddenly earlier this year by Jeffrey Kindler. He ceded the chairman position to Kindler this week, a transition that had originally been set for February. McKinnell will leave Pfizer entirely in about two months.

Pfizer said in a filing with the Securities and Exchange Commission that the decision to remove McKinnell as CEO contractually obligated the company to provide him severance payments and benefits in accordance with his employment agreement.

At any rate, shareholders aren’t likely to be thrilled at the size of the package, considering McKinnell didn’t exactly create value for investors.

The major amounts he’s owed include pension benefits with an estimated lump sum value of around $82 million and about $78 million of nonqualified deferred compensation. Additionally, he’ll get severance of more than $11.9 million, a prorated bonus for 2006 of $2.16 million and $305,644 for accrued but unused vacation time.