At Pfizer, Millions Awarded in Bonuses
Nov. 4, 2009
Jeff Gelles--The Philadelphia Inquirer
PHILADELPHIA -- Pfizer Inc.'s acquisition of Wyeth has so far shown little clear benefit to stockholders, with Pfizer's share price largely down since the deal closed on Oct. 15. The deal promises 20,000 in job cuts, about 15 percent of the combined companies' total workforce.
But at least one small group has already benefited: On Oct. 22, the Pfizer board's compensation committee approved a set of "special cash and equity awards" to two top executives "to recognize their performance and leadership" in connection with the deal.
According to a filing with the Securities and Exchange Commission dated Oct. 28, the committee awarded $1.2 million to Frank D'Amelio, Pfizer's senior vice president and chief financial officer, and $1 million to Ian Read, senior vice president and group president for Pfizer Biopharmaceutical Businesses.
Pfizer said the committee had "determined that these executives, in addition to carrying out their normal, ongoing responsibilities, devoted extraordinary efforts and made extraordinary contributions in addressing critical components of the transaction."
Before the merger, Wyeth employed about 4,500 people in the Philadelphia region - about 3,600 in Collegeville and 900 in Great Valley and other sites. The Great Valley operations will close next year, but Pfizer has not yet said how many of the region's 4,500 jobs will be cut.
D'Amelio and Read are hardly the only executives to benefit directly from the deal. According to news accounts last spring, former Wyeth CEO Bernard Poussot was awarded an exit package worth about $53 million.
Source: (c) 2009, The Philadelphia Inquirer. Distributed by Mclatchy-Tribune News Service.
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