Wyeth CEO Got 69% Pay Raise; Was "Required" to Use Helicopter; Plus $24 Million Pfizer Sale Bonus

Wyeth CEO Bernard Poussot received a 69 percent compensation raise in 2008, to $21.3 million, in addition to a $24 million change-in-control bonus for selling his company to Pfizer.*

Wyeth also took the explanation of executive perks to new levels, saying that Wyeth “requires” Poussot to travel on private jets and helicopters even for “personal” reasons:

For security and other reasons, the Wyeth board of directors requires that, when feasible, Mr. Poussot use the corporate aircraft for personal flights. Prior to his retirement, this requirement also applied to Mr. [Robert] Essner [the former chairman].

Overall, top management at Wyeth saw their pay increase 37 percent to a combined $64 million. In 2007, top management shared $54 million.

Wyeth’s top five executives — including Poussot — will also share a jackpot $64 million change-of-control bonus for saying yes to the Pfizer acquisition.

According to a Pfizer proxy document filed with the SEC, this was Wyeth management’s compensation in 2008:

• Name, 2008 pay, 2007 pay
• CEO Bernard Poussot, $21.3 million, $12.6 million
• CFO Gregory Norden, $7.7 million, $3 million
• SVP/President Joseph Mahady, $9.8 million, $7.2 million
• General counsel Lawrence Stein, $6.3 million, NA
• SVP R&D Mikael Dolsten, $2.8 million, NA
• Ex-Chairman Robert Essner, $20.9 million, $24.1 million
• Ex-SVP R&D Robert Ruffalo Jr., $4.7 million, $6.7 million

In addition, management received these bonuses for the change in control:

• Total bonuses in cash, perks, benefits and cash incentives:
• CEO Bernard Poussot, $24 million
• CFO Gregory Norden, $12.8 million
• SVP/President Joseph Mahady, $12.4 million
• General counsel Lawrence Stein, $8.2 million
• SVP R&D Mikael Dolsten, $6 million
  Does not include stock vesting, performance share unit awards, “RSUs”, pension and benefits, deferred compensation.

As for other management perks:

• Other execs may use the jets and ‘copters with the permission of the CEO.
• Poussot and Essner both retain a car and driver.
• Norden receives a leased apartment near Madison. N.J.; Poussot gets housing expenses for living near Madison.
• Poussot and Norden are provided with the use of the corporate helicopter and company automobiles for commuting pruposes, and are remibursed for the tax liability for any imputed income.
• Dolsten received relocation benefits.
• Execs were reimbursed in the event any free travel was regarded as a tax liability. Poussot opted not to receive the reimbursement in lieu of making personal use of the aircraft (i.e. he preferred the tax liability), which resulted in a cash saving for Wyeth.

The total change-in-control bonus, including stocks, was previously estimated at $75 million, according to compensation analyst Equilar.

• See previous BNET stories on pharma executive compensation:
• Valeant Executive Pay Doubles to $19.7 Million Despite Quadrupling of Company’s Losses
  
• Shire CEO Compensation Report Successfully Conceals CEO Compensation
• BMS Execs Get Cash Not to Ride Private Jets; 61% Pay Raise to $59 Million
• Allergan CEO Pyott Received Pay Raise to $11.9 Million
• Abbott CEO White Takes a Pay Cut
• Gilead Executive Pay: Modest Raises for Outstanding Performance
• Gilead Deal Gives CV Therapeutics CEO $8.4 Million Payday Despite Lack of Profits
  
• Pfizer’s Kindler Got $4.2 Million Pay Raise, Despite What Business Press Says
  
• Pfizer Execs’ Golden Parachute Is Actually a Pay Cut
  
• Genentech’s Levinson May Have No Change-of-Control Agreement in Roche Deal
  
• Amgen CEO Sharer: Options? No Thanks. I’ll Just Take the Cash.
  
• Schering CEO Hassan Has $59 Million Buyout Agreement in Merck Merger
  
• Merck Executive Pay: $36 million, Use of Private Jet, Cash Bonuses Despite Failures
• Eli Lilly Execs Receive $48 Million in Pay; Plus Chairman Taurel Adds $40 Million Nest Egg
  
• Novo Nordisk Executive Compensation: A Picture of Modesty (Except for the Car Expenses)
• As Layoffs Begin, Wyeth Execs Get $75 Million Severance Package
• How Pharma’s CEO Pay Packages Measure Up

* This sentence originally contained a typo in the dollar number for 2008 compensation. Apologies.