In a year in which he faced down a challenge from an activist investor, Pfizer CEO Albert Bourla, Ph.D., received a 14% total pay increase, according (PDF) to a securities filing.
The CEO's overall pay package, worth $24.6M, was the second-largest for Bourla, 63, in his six years as the pharma giant's top exec. In 2022, with Pfizer flying high behind megablockbuster sales of its COVID-19 products, the company rewarded Bourla with $33 million in overall compensation.
In 2023, when the company badly misjudged the plummeting demand for its COVID vaccine Comirnaty and COVID antiviral Paxlovid, Bourla felt the pinch as his pay dropped 35% to $21.6 million.
But last year brought a similarly surprising rebound in sales of the products, as Pfizer’s total revenue increased by 7% to $62.4 million. The company also pointed out in its proxy that it “successfully” delivered on a $4 billion savings program, kicked off seven pivotal study starts and ranked third in the world in oncology sales, boosted by its $43 billion acquisition of antibody-drug conjugate specialist Seagen in 2023.
“Under Dr. Bourla’s leadership in 2024, Pfizer successfully executed a year of transformative change and advanced innovation, realigning the R&D organization to help drive progress,” Pfizer said in its filing.
Pfizer’s buyout of Seagen was among the issues Starboard Value pointed to in October of last year when it called on the company’s board to “hold management accountable” for what it described as poor revenue returns on investments in R&D and M&A.
Since then, Starboard appears to have backed off its call for a shake-up. Two months ago, the hedge fund stopped short of nominating any directors to Pfizer’s board ahead of a Jan. 25 deadline.
Bourla, a veterinarian who came to Pfizer in 1993 to work in its former Animal Health unit, worked his way up the ranks, becoming Pfizer’s chief operating officer in 2018 before taking the reins the following year. In 2020, Bourla took over as chairman of the board.
In its proxy, Pfizer said it backed the board’s “leadership structure” after a review in December.
“His deep scientific, industry and regulatory expertise, along with his extensive company knowledge enables him to effectively lead the Board and execute company strategies,” Pfizer said in the filing. “Dr. Bourla’s leadership capabilities and business acumen, developed over 30 years of experience, was instrumental during 2024 as the company executed on its five 2024 strategic priorities.”
Bourla received an incentive award of $7 million for 2024, which was nearly twice the “target award” of $3.6 million and $2 million shy of the maximum specified by the company.
Total compensation for other Pfizer C-suite members included $9.7 million for departing chief scientific officer Mikael Dolsten, M.D., Ph.D.; $8.3 million for U.S. chief commercial officer Aamir Malik; and $7.9 million for new chief scientific officer Chris Boshoff, MD, Ph.D.