What Pipeline Problems? Kindler Gets A Raise

Pfizer increased Jeff’s pay package by 10 percent to $12.6 million last year, even though the drugmaker’s earnings plunged. Kindler’s salary was increased to nearly $1.5 million in 2007. His bonus, however, was reduced to $3.1 million, from $3.3 million in 2006. The Pfizer ceo also received stock and option awards that were valued by the company at about $7.6 million on the day they were granted.

His other compensation totaled about $440,000, which included nearly $175,000 for using company aircraft, more than $42,000 for a car and $10,000 for financial counseling, according to the proxy statement filed with the Securities and Exchange Commission. Apart from his 2007 compensation, Kindler also realized more than $750,000 on vesting restricted stock units, the Associated Press writes.

The bigger pay package was awarded despite a plunge in Pfizer’s earnings last year to $8.3 billion, while revenue barely rose 1 percent. Meanwhile, Pfizer suffered from increased generic competition, the embarassing end to sales of the Exubera insulin inhaler and a loss of confidence on Wall Street. As the AP reminds us, Pfizer shares climbed to a high of $27.73 last June before dropping back to end the year at $22.73.

The AP’s total pay calculations include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

At Pfizer’s annual meeting on April 24, investors will consider at least two shareholder proposals. The first proposal would mandate that no future new stock options are awarded to senior executive officers and that current stock options are not repriced or renewed. The shareholder, who was not identified in the proxy filing, said stock options are too easily manipulated for financial gain. Another unidentified shareholder proposed that the company separate the roles of chairman and CEO to allow an independent director to serve as chairman. Pfizer recommends shareholders vote no.

Source: The Associated Press