Chairman and CEO, Bristol-Myers Squibb
Total 2014 Compensation: $27.06 million
A perennial entry on the highest-paid CEOs list, Andreotti is making his last appearance for 2014. He handed over the reins at Bristol-Myers Squibb ($BMY) to Giovanni Caforio in May 2015, though he'll remain executive chairman till August and nonexecutive chairman after that.
And he's going out on a high note, at $27 million in total pay. That's $7 million more than his 2013 total, though part of the difference depends on Bristol-Myers' new method for calculating certain awards.
Andreotti collected $1.7 million in base pay, slightly more than the norm in Big Pharma. His cash incentive pay amounted to $5.6 million, also above the usual payout--and $2 million more than he's earned in bonus pay since 2012. His stock awards amounted to about $18 million.
Bristol-Myers' compensation committee explained Andreotti's $22-million-or-so in incentive compensation with a few bullet points. Excellent shareholder returns, for one; the proxy says the company's returns beat "many of our peers" and the S&P 500 Index while Andreotti has been CEO.
Enhancing the value of the company's pipeline was another, and that brings one big prospect to mind: the cancer immunotherapy Opdivo, which won FDA approval in late 2014 and already has a new indication to its credit. Analysts see Bristol-Myers collecting more-than-blockbuster sales from the drug, which is also expected to help boost the company's older cancer med Yervoy, as the two are used in tandem.
Optimism about Opdivo may have helped offset delays with Daklinza (daclatasvir), the hepatitis C treatment that was the first of a new generation to be approved in Japan but lagged its rivals in the U.S. After Bristol-Myers yanked a Daklinza-based combo cocktail last year, the company recently asked the FDA to approve it for use alongside Gilead Sciences' ($GILD) Sovaldi.
Andreotti was also due for reward, the company's proxy says, for finalizing the sale of Bristol-Myers' diabetes business to partner AstraZeneca ($AZN) and handling "structural and operating model changes" at the company, which would have to include an R&D rejig that got Bristol-Myers out of discovery work in three disease areas--including hep C and diabetes--and claimed at least 70 staffers. The aim, the company said at the time, was to focus R&D on Bristol-Myers' most promising fields, including oncology. And in late June, the company said it would get out of discovery work in virology, but said it's committed to its existing drugs--and late-stage products--in that field.
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