Genzyme's Termeer Got $50M in Compensation Over Last 3 Years; Wife Got Trips to Asia on Corporate Jet
Henri Termeer, the CEO of disaster-prone Genzyme (GENZ), was given $50.8 million in compensation for the last three years, according to the company’s filings with the SEC (see page 24). He earns about $14 million a year for running a company that has about $4 billion in sales. By contrast, AstraZeneca (AZN)’s David Brennan receives $4.7 million in compensation for running a company with revenues of $31.6 billion.
Termeer has been criticized of late because his factories have been crippled by FDA inspections, polluted drugs and the loss of a monopoly it once had on drugs for unusual diseases such as Pompe Disease.
Termeer’s high compensation will doubtless be examined by investor Carl Icahn, who has just upped his stake in the company. Icahn likes to weed out unnecessary expenses prior to dressing up companies for acquisition.
The company spends about $74,000 a year on a personal driver for Termeer.
On top of that, Termeer and his wife and family also have access to the corporate jet. “In certain circumstances we consider the presence of spouses at business functions integral to the success of a business trip,” the company disclosed. Much of Termeer’s business takes place in Asia, where the locals expect to see the wife, the company claims:
“… we view the spouse’s flight as integrally and directly related to the performance of the executive’s duties and, consequently, do not consider the cost to represent a perquisite.”
Such flights are taxable, so Genzyme gives Termeer a gross-up payment to take care of it.
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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