OvaScience's Chief Executive Dipp Sees Pay Tumble With Sharesby and
Her compensation plummets 85%, worst in Bloomberg Pay Index
Anacor CEO's pay valued at $82 million, more than triple 2014
Michelle Dipp, chief executive officer of fertility-treatment maker OvaScience Inc., has watched her compensation plummet 85 percent so far this year amid a decline in her company’s shares.
The value of Dipp’s package fell to $4.31 million from $28.2 million awarded at the end of 2014, according to the Bloomberg Pay Index. That’s the largest percentage drop of any of the 200 highest-paid U.S. CEOs at companies with fiscal years that align with the calendar year. Cambridge, Massachusetts-based OvaScience has plunged 79 percent this year as the company said sales of the Augment treatment would fall short of its goal.
Anacor Pharmaceuticals Inc. CEO Paul Berns is the biggest gainer this year, with pay that has soared more than threefold in value to $82.2 million. His pay surge mirrors the 274 percent increase this year in the Palo Alto, California-based drugmaker’s stock. DeDe Sheel, an Anacor representative, declined to comment.
“You’re in business to benefit shareholders, so you should ride up and down based on how the stock does,” said Alan Johnson, an executive compensation consultant at Johnson Associates in New York. “We want our executives in America under pressure. That’s a good thing.”
Dipp, who co-founded OvaScience in 2011, opted not to receive an annual salary “to demonstrate her commitment,” according to an e-mail from Michael Devine, a spokesman for the company at FleishmanHillard.
“Michelle’s compensation is entirely equity-based, she has not sold any shares and has continued to purchase personally as she remains dedicated to the long-term success of OvaScience,” Devine said in an e-mailed statement.
Compensation figures in the Bloomberg index will continue to fluctuate with markets as the year progresses, so Dipp and Berns may still see their fortunes change. Awarded pay measures what a compensation committee intended to pay an executive, not what was reported by the company in the summary compensation table. It includes salary, cash bonuses and stock awards received during the fiscal year that are valued as of that year-end’s stock price.