2016 compensation: $17.73 million
When George Scangos announced that he’d be leaving Biogen midway through last year after 6 years at the helm, the company’s top meds had just turned in solid second-quarter growth and its net income had grown by 13% to $1 billion. Earnings per share had grown by almost one-quarter to $5.21. The company hiked its earnings guidance for the year.
Same song, second verse in the third quarter: Street-beating sales of $2.28 billion, partly thanks to a 2.5% boost to multiple sclerosis drug pricing.
But Scangos’ tenure has recently been fraught with investor pressure and flagging growth for its blockbuster MS med Tecfidera—and Tecfidera faced some patent challenges. Some analysts put the company on their lists of potential takeover targets. Others said they were hoping for an outsider CEO to come in and shake things up.
But Biogen elevated its commercial chief, Michel Vounatsos, and decided to spin off its hemophilia business—newly dubbed Bioverativ—in a process completed in March.
All of which is to say that Scangos announced his departure on an up note, but the company has plenty of challenges ahead.
For his final year as CEO, Scangos collected (PDF) a $1.5 million salary, down slightly from 2015, but that small difference was more than made up by incentive pay of $2.54 million, more than double the previous year’s $1.18 million.
Stock awards, meanwhile, came in at $13 million. Scangos’ pension boost amounted to just $221,642, and his perks and other benefits rang in at $463,493, less than half of 2015’s $954,718. Of that 2016 figure, $446,538 came in the form of savings plan contributions.