So GlaxoSmithKline's dynamic duo is worth $4.1 million each. The two execs passed over for the CEO job--Chris Viehbacher (photo), president of the company's U.S. pharma business; and David Stout (photo), president of pharmaceutical operations--will each get a retention package worth that much if shareholders approve. Most of the package will come in the form of stock options over the next two to three years, with a small amount up front in cash.
You'll recall that, while deciding whom to appoint as its next chief exec, Glaxo put Viehbacher, Stout, and then-European president of pharma Andrew Witty (photo) through their paces. The board chose Witty as CEO-designate, of course, and immediately investors began to worry that Viehbacher and Stout would jump ship, taking their considerable expertise with them. What better way to assure their loyalty than a staged payoff, plus a big say-so on the board?
- read the reportÂ from The Telegraph