Total Compensation: $21.164 million
Professional Profile: In 1998, David Pyott made the leap from Novartis ($NVS), where he ran the nutrition division, to Allergan ($AGN), which was an eye-care business at the time. Pyott, 59, led the company through a series of acquisitions and diversification moves to add specialty drugs and medical devices to the mix. He's collected several "Best CEO" awards along the way and received an order of chivalry from Queen Elizabeth II in 2006.
Compensation Breakdown: $1.3 million in salary, $9.39 million in stock, $7 million in options and $1.64 million in incentive pay, plus $1.77 million worth of pension growth and deferred compensation and $51,936 worth of perks and other compensation.
Company Performance: Allergan wrapped up its latest buyout--SkinMedica, in a $350 million deal--in December and set up a couple of new or expanded partnerships, including an eye-drug development deal with Molecular Partners. Botox, Allergan's best-known and best-selling product with $1.76 billion in 2012 sales, reaped a new FDA indication in patients with overactive bladder, a use that could add $400 million to the drug's annual sales. Overall, Allergan's 2012 revenues grew by 9.1% in local currencies (6.8% in U.S. dollars) to $5.8 billion. EPS rose by 15%.
Pyott's 51% increase in pay for the year depended not only on 2012 results but also on his long-term role in transforming Allergan into a $5.8 billion diversified healthcare company with a market capitalization of $20 billion, compared with $3 billion when he joined up. But Pyott will have to stick around to collect that extraordinary bonus: The performance shares vest in 2017.
Special Report: Allergan - Top 10 Pharma Advertising Budgets - 2012
Allergan CEO nabs 51% pay hike with $9.4M one-time bonus
FDA approval smooths way to more Botox sales
Allergan mulls sale of its anti-obesity device business
Allergan scratches expansion itch with $350 million SkinMedica offer
Bladder nod for Botox first step to $400M in extra sales