Celgene chief Hugin nabs $22M for his CEO swan song

Celgene Executive Chairman Bob Hugin
Celgene Executive Chairman Bob Hugin.

In his final full year as Celgene CEO, Bob Hugin took a bit of a pay cut from 2014. But his compensation still racked up to $22.5 million, among the highest in biopharma, as the cancer-focused company continued to outclass its bigger rivals on revenue and earnings growth.

Hugin’s base salary inched up in 2015 to just over $1.4 million, after Hugin nabbed a raise in March, but his cash bonus dropped a bit.

For 2015, Celgene ($CELG) revenue fell in line with Hugin’s performance targets--$9.26 billion, right in the range of $9 billion to $9.5 billion. So did earnings, where the target range was $4.60 to $4.75 per share; Celgene delivered $4.71. On his other goals, including R&D milestones for some key drugs, the company beat targets slightly. 

Free Daily Newsletter

Like this story? Subscribe to FiercePharma!

Biopharma is a fast-growing world where big ideas come along daily. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. Sign up today to get pharma news and updates delivered to your inbox and read on the go.

The upshot? A cash bonus of $2.25 million, plus incentive payouts under previous years’ awards of $5.11 million, bringing non-equity incentive pay to $7.37 million. For 2014, Hugin netted $9.11 million in the same column.

Hugin captured options worth just shy of $8 million, down from $9.61 million in 2014; his stock awards, however, moved upward to $5.43 million from $3.89 million.

Grand total: $22.47 million, down from $24.24 million in 2014.

Next year, Hugin is set for a potential decline in compensation because he stepped out of the CEO role, handing that baton to President and COO Mark Alles. Hugin remains executive chairman, with the same base salary--$1.5 million--but his cash bonus target is now 125% of his salary, down from 150%.

Alles, on the other hand, Alles saw his base salary go up to $1.1 million with his promotion March 1, compared with $871,250 for 2015. His bonus target goes up to 125% of his base salary, compared with 90% in 2015.

Targets for 2016? Revenue of $10.5 billion to $11 billion and EPS of $5.50 to $5.70. That’s another step toward Hugin’s stated goal of $12 billion in revenue by 2017, a prediction he made back in January 2013, though analysts weren’t thrilled with the forecast.

Key to Celgene's short-term strategy--and both Hugin and Alles’ payoffs for the year--are its multiple myeloma meds, the megablockbuster Revlimid and up-and-coming Pomalyst. The company expects as much as $6.7 billion from Revlimid this year, and it recently wrapped up a patent settlement with India's Natco Pharma to keep branded sales coming through 2022.

Pomalyst, already in a head-to-head battle with Amgen's ($AMGN) Kyprolis, faces some new competition from Bristol-Myers Squibb ($BMY) and AbbVie's ($ABBV) Empliciti; Takeda's Ninlaro; and Johnson & Johnson's ($JNJ) Darzalex, which is priced lower than the Celgene med at $135,000 per year. So far, Pomalyst has led the market share race in multiple myeloma patients who've relapsed after two other rounds of therapy, but a bigger market awaits in second-line treatment, and Amgen's Kyprolis was first to move there with an FDA approval in July.

- see Celgene’s proxy statement

Special Report: The top 20 highest-paid biopharma CEOs of 2014 - Bob Hugin, Celgene

Related Articles:
Celgene ends horse race for CEO successor, tapping Mark Alles
Celgene boosts Q4 sales by 24% on stalwart Revlimid, up-and-coming Otezla
Celgene opens door for early launch of Revlimid generics
J&J undercuts Celgene's Pomalyst with $135K-per-year Darzalex price
Celgene powers on toward aggressive 2017 goal

Read more on