CEO, Bristol-Myers Squibb
Total Compensation: $17.2 million
Professional Profile: Lamberto Andreotti, 62, had already recorded stints at KABI Pharmacia and Pharmacia & Upjohn when he joined Bristol-Myers Squibb ($BMY) in 1998. By 2002, he had been promoted to SVP and president of worldwide pharmaceuticals; from there, he took a few more steps up the ladder to president and chief operating officer. In May 2010, he took over as CEO.
Compensation Breakdown: $1.62 million in salary, $9.72 million in stock, and $3.84 million in incentive pay, plus $1.19 million worth of pension growth and deferred compensation. The company's contributions to Bristol-Myers' savings plans amounted to $818,078, recorded as "other compensation."
Company Performance: It wasn't supposed to be a banner year for Bristol-Myers in 2012, but in addition to the expected full-scale battering from Plavix generics and Avapro and Avalide copycats, the company also took a serious hit on a new drug that was supposed to help fill in sales. After spending $2.5 billion to buy Inhibitex in January, jazzed by the prospects for its hepatitis C hopeful, the company had to stop a trial of the drug for safety reasons--and take a $1.6 billion write-off on the program. And in June, FDA delayed approval of blockbuster candidate Eliquis, the anticoagulant it developed with Pfizer ($PFE). By year's end, sales had taken a 17% slide to $17.6 billion, and some market watchers were nominating Andreotti as worst pharma CEO of the year.
Andreotti fought back with a new diabetes strategy: Bristol-Myers paid about $5.3 billion for Amylin Pharmaceuticals ($AMLN) and then handed over its diabetes products to an amped-up joint venture with AstraZeneca ($AZN). The FDA finally gave its blessing to Eliquis and also approved Forxiga, a new diabetes drug to add to its lineup. And in reporting 2012 sales, Andreotti pointed out serious growth for other new drugs, including the melanoma treatment Yervoy and leukemia therapy Sprycel. In explaining his incentive compensation for the year, the board's compensation committee credited Andreotti with "effectively" responding to the clear challenges 2012 had to offer, for shepherding the new drugs to the market and for recruiting three new top managers for his team.
Special reports: Bristol-Myers Squibb - 10 Largest U.S. Patent Losses | Top 10 Pharma CEO Salaries of 2011 - Lamberto Andreotti - Bristol-Myers Squibb
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