Bristol-Myers CEO Gets 27% Pay Increase After Cancer Drug Sales Start Fast
Bristol-Myers Squibb Co. (BMY) Chief Executive Officer Lamberto Andreotti received a 27 percent increase in total compensation after a new skin cancer drug gained approval and contributed to higher sales and profits.
Andreotti’s total compensation rose to $14.9 million in 2011 from $11.8 million a year earlier, according to a regulatory filing. The pay included a bonus of $4.2 million related to the company’s financial results, share price increase and the start of sales for the melanoma drug Yervoy, according to the filing. Andreotti also received an 11 percent base salary increase to $1.5 million effective April 1, 2011, “to bring him closer to competitive market levels,” the company said in the filing.
The higher pay for Andreotti reflected, among other things, his leadership in “delivering the strong 2011 financial results” such as annual earnings per share of $2.28 that exceeded a target of $2.14 a share and “executing the Yervoy launch,” the company said in the March 9 filing with the U.S. Securities and Exchange Commission.
Bristol-Myers loses patent exclusivity on its best-selling drug Plavix later this year. It is counting on new drugs such as Yervoy to replace the expected reduction in revenue. The melanoma treatment was approved in March 2011 and generated $360 million in sales last year. Bristol-Myers in January agreed to purchase Inhibitex Inc. for $2.5 billion to gain its hepatitis C drug as part of its “string of pearls” strategy to develop new products through acquisitions.
The New York-based drugmaker also ended a one-year salary freeze for all employees in 2011, the company said in the filing.
Bristol-Myers rose less than 1 percent to $33.05 in New York. The company’s shares, which gained 33 percent in 2011, have declined 6.2 percent this year.
Jennifer Mauer, a Bristol-Myers spokeswoman, had no comment beyond the filing.
To contact the reporter on this story: Robert Langreth in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Reg Gale at email@example.com