Huge pay for ousted CEO of Pfizer
Pfizer Inc.'s former chief executive, Henry A. McKinnell, who was forced into early retirement in part because of investor anger about his rich retirement benefits, will get a retirement package totaling more than $180 million, a new regulatory filing shows.
McKinnell’s package, which the company disclosed in a filing with the Securities and Exchange Commission on Thursday, included an estimated $82.3 million in pension benefits, $77.9 million in deferred compensation and cash and stock totaling more than $20.7 million.
The total value could grow to almost $200 million if McKinnell gets an $18.3-million stock award, but that is contingent on future performance of the stock of the world’s largest drug maker.
The company said McKinnell’s employment agreement “contractually obligated” it to provide him certain severance payments and benefits.
The deferred pension sum includes $67 million of his own prior compensation he chose to set aside, the filing said.
Beyond that, Pfizer will pay a lump sum severance of $11.9 million and fully vest stock grants worth $5.8 million, according to the filing. He also will receive $2.2 million for 2005 bonus payments, $305,644 for unused vacation time and $576,573 for benefits he would have received had he stayed at the drug maker.
The package also provides him with an annual pension of $6.6 million until he dies, worth an estimated $82.3 million.
McKinnell vacated the CEO position in July, 19 months before he was scheduled to step down, under pressure from investors angered about his retirement package and Pfizer shares’ substantial downturn during his five years in charge. He was replaced by Jeffrey B. Kindler.