Friday, April 28, 2006

Pfizer CEO's "Pay for Pulse" Compensation

That is how the AFL-CIO characterized CEO Hank McKinnell's compensation, according to the Financial Times.
As the New York Times reports, more than 20 percent of shareholders withheld their votes for two board members, including the chair of the compensation committee. The reason for the dissent was the disconnect between Hank McKinnell's pay and the company's performance:
Since he took the top job at Pfizer in 2001, Mr. McKinnell has received $65 million in compensation and will receive an $83 million pension when he retires. During his tenure, Pfizer's shares have lost 46 percent of their value.
Rajesh Kumar, an orthopedic surgeon from Lincoln who said he was a Pfizer shareholder, asked from the floor why Mr. McKinnell received in two days what he as a doctor earned over the course of one year.
In most settings, 20 percent opposition isn't much, but in elections to corporate boards, it's a big number, since it comes from mostly institutional investors.

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