Chairman and CEO, Johnson & Johnson
2016 compensation: $26.87 million
Johnson & Johnson has had a good run with its pharma business. It has pushed drug after drug to market over the past several years as many of its peers struggled to bring pipeline meds to fruition.
Its prescription drug sales have grown quarter after quarter, helping to shore up declines that have hit its medical device and consumer health businesses. And 2016 was no exception to that: J&J’s pharma sales grew by 6.5% over the year to $33.5 billion, with its new meds chipping in solid growth.
And at least one of those new meds—the blood cancer med Imbruvica, which it shares with AbbVie—promises to be a megablockbuster. It racked up $1.2 billion for J&J in 2016, and EvaluatePharma predicts that it will be the third best-selling cancer drug in the world by 2022, with $8.29 billion in estimated sales.
Overall, 2016 was a solid year—“excellent,” by the estimation of J&J’s board, which qualified Gorsky for a performance bonus and equity awards higher than those he collected in 2015. Those two categories were paid out at 135% of Gorsky’s target, up from 110% in 2015, with dollar amounts ringing in at $3.78 million and $16.84 million, respectively. That’s up from $2.8 million and $13.73 million in 2015.
The amounts that count toward his 2016 compensation package, because of accounting for performance goals for that year and prior years, came to $4.65 million in incentive pay, $10.6 million in stock awards and $4.12 million in options.
Gorsky’s base salary stayed the same—$1.6 million, which is higher than several of his peers’—and his other compensation amounted to $228,094, including $85,217 for personal use of the corporate aircraft and $53,934 for a car and driver. His pension fund value increased by more than $5 million, higher than the increase in 2015.
J&J’s board handed Gorsky kudos for gaining market share and moving into new lines of therapy, plus exceeding overall growth targets in spite of shortfalls in emerging markets. The directors also patted him on the back for growth in key meds, including the diabetes drug Invokana and anticoagulant Xarelto, plus acquisitions—though J&J’s planned $30 billion deal for Actelion wasn’t on the list because it hasn’t closed yet.
Not everything in 2016 was rosy: The company faced biosimilar competition to its big-selling Remicade for the first time beginning in November, with more copycat versions on their way. Coming so late in the year, however, Pfizer’s Inflectra biosim didn’t weigh on Remicade’s sales in 2016, and 2017 results remain to be seen.
Overall, Gorsky’s compensation grew to $26.87 million from $23.79 million in 2015.