Chairman and CEO, Johnson & Johnson
Total 2014 Compensation: $24.99 million
Alex Gorsky got a big lift in pay for 2014, moving from $16.9 million in 2013 to just shy of $25 million. Some accounting changes did represent part of that increase, but not all of it--and Johnson & Johnson's ($JNJ) financials show why.
J&J has been among the few drugmakers with little to apologize about when totting up new product sales. The company's pharma business has been growing fast, thanks to prostate cancer pill Zytiga, blood cancer therapy Imbruvica, anticoagulant Xarelto and diabetes med Invokana, to name a few.
Thanks to all that--and some growth from top-selling Remicade, too--the company racked up a 16% increase in pharma sales last year. Its consumer health division finally moved out of the woods, with more products back on the shelves after the long series of recalls back in 2009. Overall, the company managed a 4.2% increase in sales.
J&J isn't all golden, however. The company is still embroiled in litigation over alleged failures to warn about side effects of products such as the antipsychotic drug Risperdal and its vaginal mesh devices. But despite legal settlements and the like, J&J still delivered big for shareholders, with returns of 17% for 2014, the company's proxy points out.
Gorsky's salary is about on par with those of his pharma peers at $1.5 million, and he doesn't collect any straight bonus pay. Incentive pay ticked slightly above $5 million, a 3% increase over 2013's $4.87 million. The big differences over 2013 came in stock awards--$9.47 million, up from $5.99 million--and options, which amounted to $4.17 million, up from $2.67 million. Plus, Gorsky saw his pension and deferred compensation grow by $4.6 million, more than twice the increase recorded for 2013. Total: $24.99 million.
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