Top 17 Paychecks in Big Pharma

And everyone wonders why drugs cost so much?!

Interesting how the European companies CEO compensation is much lower than the US CEOs. This despite the fact that Roche, Novartis and SanofiAventis are among the largest companies. Bottom line: US CEOs are overcompensated both relative to the market and the size/productivity of their firms. Knowing this excessive pay filters quite far down the management tree, there is a heck of a lot of money being spent on overpaid, underperforming excecutives that could be returned to shareholders or ploughed right back into imactful R&D. (the difference between Miles White and David Brennan's compensation alonewould fund ~10+ Phase 1 trials, or one meaningful Phase3 registration study!)

The bottom line is that in a free market system the "invisible hand" does a fairly good overall job in allocating resources. Why don't people complain about Tiger Woods' 2008 $122 million compensation?

Where have all the leaders gone? In a time when big pharma is leading the corporate pack in losses and reduced shareholder value executives continue to be exempt from accountability for the poor performance of their corporation. Instead of finding ways to increase revenues and and grow the bottom line they are getting fat payouts for cost cutting through layoffs and cost efficiencies.

This is a short term solution with long term consequences and is unsustainable. Anyone can cost cut anyone can lay off people anyone can find ways to cut expense. Leaders find creative solutions and are held accountable for their performance. I for one can drive a company into the ground for a lot less than what most of the CEO's are being payed. It about time shareholders hold CEO's accountable and tie their pay to performance much like the employees they have so thoughtfully laid off. Although that would take a decision by the board and well, that means they have to be tied to performance as well.

Couldn't agree more with the last poster!

With a record year of LAYOFFS and the additional 2,400 from Merck and Wyeth combined weeks ago brings the total to around 45,000 employees in 2007 from 10 pharm/biotech companies.

Do you realize the number of people looking for work in 2008 from these 10 companies is equivalent to the number of approximate casualties from the earthquake in China.

Those that haven't been affected directly by the slash of these overpaid corporate executives don't realize the tremendous silent impact this has had on a medium size suburb in the US.

When is someone going to take the helm and make some real impact on our healthcare industry? Politicians continue to say reform is overdue and point the finger at big pharma. These ego maniac CEO's need to realize that we have the largest population of US citizens that require their leadership. Stop taking the easy short road to shareholder profits. Have some courage and make the tough decision. There is no reason, what so ever, why this industry shouldn't be expanding to accomodate the boomers that are in need.

The earnings are obscene!

The grossly high pay is concentrated primarily in US CEOs. The pay for heads of GSK, Bayer, Sanofi and A-Z are all relatively lower. The data are consistent with prior observations of a US-EU differential on this point.

Tiger Woods? How about Lebron James at $90 million a year? Plus the team can't even get to the third round of the play offs.
Also remember, most US companies were taken from the Germans in the 1940's, their assets siezed from Hitler, thats why there is Merk, Merk AG, Shering Shering AG, and on and on. Biotech, the United States is light years ahead of Europe, so come up with those drugs for cancer, ms, etc., and you have earned your money in saving lives, hosptial and doctor care. Medicine is 9 cents of every healthcare dollar and has risen less than hospital or physician cost more than any other component, but many complain, for their insurance does not pay it all, they have to pay a copay more than the doctor. People doon't even look at their physician and hospitial bills after a stay. Then you will see why employers are going broke, they can not afford healthcare for the U.S. worker. Its not a CEO at a drug companies salary, pick another cause, for your facts are all screwed up here.

The reason some of these highly paid; poorly performing CEOs get kicked out after years of underperforming is that they usually stack the board of directors in their favor by removing hostile uncontrollable members and replace them with puppets who get paid to keep the CEO in office.