Last year, currency effects dragged down Johnson & Johnson's ($JNJ) sales and profits, and hefty hep C competition hurt sales of former standout Olysio. But those weren't the only numbers on the decline at the drugmaker.
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| J&J CEO Alex Gorsky |
CEO Alex Gorsky's pay package dipped, too, according to the company's proxy filing, with the total amount coming out to $23.8 million--4.8% less than the $25 million he racked up in 2014.
Gorsky's base salary, stock and options sums actually went up; he pocketed $1.6 million last year in salary, up from $1.5 million the year prior. And he netted more in stock and option awards, too, which tallied $15.3 million instead of 2014's $13.6 million.
But the value of his pension took a tumble, diving 41% to $2.7 million from $4.6 million, and nonequity incentive pay sank to $4 million from $5 million. Gorsky also got squeezed on his bonus, which rang up at $2.8 million compared with 2014's $3.5 million, and J&J shaved $26,691 off his other compensation--which includes personal benefits, tax reimbursements and insurance premiums.
Gorsky wasn't alone in watching his pension value deflate. CFO Dominic Caruso, R&D chief Paul Stoffels, Chairman Sandra Peterson and VP of general counsel Michael Ullman's sums all decreased, too. And aside from Peterson, all took home less compensation overall.
Meanwhile, Gorsky has plenty on his plate for the current year. While the company's new launches are still delivering big-time in the sales department, hep C sales have been plummeting thanks to rivals from Gilead ($GILD) and AbbVie ($ABBV). And currency effects are continuing to take their toll; last quarter, they depressed J&J's top line by 2.4% to $17.81 billion, which hit below analyst estimates.
And at least one big investor thinks the New Jersey pharma giant could solve its problems with a large-scale breakup. In January, Artisan Partners lobbied for a three-way split--and rejigging the company's exec pay system was on its slate of suggestions, too.
- see J&J's proxy filing
Special Reports: Top 15 pharma companies by 2014 revenue - J&J | Top 20 highest-paid biopharma CEOs - Alex Gorsky, J&J