Actavis' ($ACT) agreement to buy Allergan for $66 billion put then-Allergan CEO David Pyott in line for a hefty payout in cash and shares--and now that the tie-up is official, he's collecting.
The former skipper converted stock and options into $534 million in cash on March 17--the day the deal closed, Bloomberg reports. Of that, options netted him $497 million in cash, while he traded in 285,000 shares, including some newly vested, in exchange for $36.9 million.
Part of that sum came from his golden parachute, an $89 million change-in-control package comprising cash and shares. The Actavis deal accelerated the vesting of all his stock awards, including those awarded in 2012 as a one-time bonus. Worth more than $9 billion back when Allergan's market cap was $20 billion, they became considerably more valuable thanks to a months-long takeover battle with Valeant ($VRX) and, finally, Actavis' white-knight swoop-in.
That hefty take-home may be the reason Pyott recently declined to join the combined company's board. Though Reuters sources said in January that Actavis chief Brent Saunders was working to add Pyott his the list of directors, earlier this month, the company announced two new directors from Allergan's board, and Pyott wasn't among them.
Of course, there are other reasons Pyott may not have joined the boardroom slate, beyond the allure of an earlier retirement. For one, he would have been the third nonindependent director on the roster with Saunders and Executive Chairman Paul Bisaro--a tally that's a bit high, the way proxy advisory firms tend to see it.
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