Sanofi $69 offer hits Termeer's personal wallet

Genzyme CEO Henri Termeer (photo) may have a selfish reason for refusing Sanofi-Aventis' $69-per-share offer. Yes, Termeer would get a big buyout bonus--$11 million by some estimates--but that bonus plus his own stock-related gains wouldn't make up for the loss of future pay and the loss of upside on his stock options, the Wall Street Journal figures.

Here's how the math stacks up: At $69 per share, Termeer would get an $8.5 million gain on his stock options--13.6 percent--plus $9.6 million for his Genzyme stock. He'd also get an $11 million change-in-control payment. That's $29 million. The present value of three more years of pay as CEO is $9 million more, or $38 million.

For Termeer to break even, Sanofi would have to offer $71 per share. Or, as the Wall Street Journal suggests, the French drugmaker could give Termeer a continuing role at the company, along with a commensurate salary. Sanofi could offer straightforward financial incentives. Or Sanofi could make its hostile bid even more hostile by accusing Termeer of opposing the deal for his own financial reasons.

- get the WSJ analysis

ALSO: Sources tell Reuters that a new proxy battle for control at Genzyme is a real possibility now that Sanofi-Aventis has made its tender offer and is settling in for a long fight to buy the company. Report