Healthy Skepticism Library item: 8987
Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.
Publication type: news
Abbott's White receives $22.5M in 2006
Associated Press 2007 Mar 19
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-15338477.htm
Full text:
CHICAGO (AP) – The chief executive of Abbott Laboratories (NYSE:ABT) Inc., Miles White, received compensation valued at $22.5 million from the pharmaceutical and medical products maker last year, according to an analysis of a regulatory filing by the company Monday.
White was paid a base salary of $1.66 million, a 3.5 percent raise from the previous year.
The bulk of his compensation came from being granted a combined $14.2 million in options and restricted stock, which the company said was performance-based. That total included a stock option grant of 438,000 shares, valued at $5.1 million at the time they were granted in February 2006, and 139,000 shares in performance-based restricted stock, valued at $6.1 million.
Abbott said it also awarded White $4 million under an incentive plan to recognize his leadership in guiding the company to a strong performance compared with its peers.
White also received perks worth $855,233 for items including contributions and payments related to his employer-sponsored retirement plan and use of the company aircraft.
The company said the 51-year-old White had exceeded his strategic and financial goals for 2006, citing Abbott’s strong growth in sales, earnings and shareholder returns that placed it in the top quartile of simiilar health-care companies.
The Associated Press calculations of total pay include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits and sometimes differ from the totals released by the companies. Abbott put White’s total compensation at $26.9 million.
North Chicago, Ill.-based Abbott reported 2006 net earnings of $1.7 billion, down 49 percent from the previous year because of charges related to its multibillion-dollar acquisitions of Kos Pharmaceuticals Inc. and Guidant Corp.‘s heart stent and vascular business. Revenue rose 0.6 percent to $22.5 billion.
Analysts have been bullish on the rapid growth of its pharmaceutical business, led by anti-inflammatory drug Humira.
The company’s proxy statement said shareholders will vote at its April 27 annual meeting on whether to approve an advisory vote on executive compensation and whether to recommend separating the roles of chairman and CEO.
Abbott shares closed 30 cents higher at $53.18 on the New York Stock Exchange. They are up 9 percent this year after rising 24 percent in 2006.
