Amgen’s Kevin Sharer: One Of The Worst CEOs
11 CommentsBy Ed Silverman // May 1st, 2008 // 8:09 am
That’s according to the latest ranking by Forbes magazine, which scrutinized performance versus pay for 175 ceo’s. Kevin came in at…drum roll…No. 169 thanks to his many accomplishments - Amgen stock dropped, on average, 4 percent each year while he earned $12.3 million, on average, annually. Click here to watch ABC News single him out.
Simply put, Kevin has presided over a crisis: The stock is down about one-third in the past year, thanks to various FDA warnings over health risks associated with its Aranesp and Epogen meds, not to mention reduced Medicare reimbursement. Congress is investigating marketing practices and the SEC is probing a failure to disclose that a key clinical trial ended over safety concerns, which only became known after an industry newsletter published the details. Oh, and let’s not forget the layoffs - which are designed save money so there’s some coin left in the treasury to pay his salary.
All of this has angered many investors, some of whom are calling for Kevin’s resignation. An Internet petition was even circulated last year demanding his head. They’ll get to sound off next Wednesday at the annual meeting, although some apparently haven’t received their ballots.
Steve Silverman
Interesting story. In a recent article in the Ventura County Star, I said, “Now the super rich are only very rich”. How propitious!
Julie
Talk to most employees at Amgen they will tell you what he and the supposed “leadership” has done to this company, its horrible. People have been pushed out of the company and he spouts “Amgen Values” is and always will be the biggest joke at Amgen. I guess it looks good for the news articles.
He has managed to take care of himself & executives financially, the stockholders should be upset and he among others should be gone!
Anne
I took the voluntary package last year and after 8 years got the hell out of Dodge. SO much money was wasted on projects that never came to fruition. I worked with so many capable people who understood what needed to be done, but due to managerial incompetence, never got to do it. I loved what I did and I enjoyed working with many of the other staff, but unfortunately that is no longer what the company is about. The politics, the incompetence, the lack of understanding/caring at the managerial level, and the resultant crash in employee morale, continue to drive competent staff away. The carrots currently being dangled are seen as withered and useless. Such a waste, compounded infinitely by paying Kevin for his “guidance” in leading us there…
Julia
Anne is right on. I currently work at Amgen and it is so top-heavy with incompetent management. Kevin is the epitome of arrogance and is so out of touch with the company it’s pathetic. Leadership is sorely lacking. As a stock holder I am angered that he is still at the helm. I sincerely hope the whole BOD gets the boot next week. It can’t happen soon enough. Wake up stock holders!!
Jennifer
Actually both Julia and Anne are right. I am currently an employee of Amgen and I am interviewing with other companies because I can’t stand going to work. Middle management is blatantly mistreating folks. Employees who are going to HR about unethical conduct are being targeted for termination and worse, face daily retaliatory conduct. All this awful behavior is being ignorned and in most cases condoned by upper management. Employees are aware of this unlawful conduct but are are keeping quiet for fear of losing their jobs. We are being written up for speaking up, it can’t get worse.
Dr. No
Hey, what do you expect, Kevin is a former submarine commander, maybe after all these years on land he still has not figured out that down is not up anymore. Hahahahahahah!
Casey
Julia, Anne and Jennifer are absolutely right on target! I was there 12+ years and I too took the VTP package last fall. It was the best thing that ever happened to me. I used to be so proud to work for Amgen. The Amgen that I used to love vanished the day Gordon Binder left and Kevin took over. I honestly feel sorry for the folks left behind. I wish everyone the best.
A Parkie
Also under Sharer’s dubious “leadership” Amgen halted its promising clinical trials of GDNF for Parkinson’s Disease. They also refused compassionate use of the treatment for phase I and II trial participants who had experienced great improvement in their symptoms and refused to allow any other companies or researchers continue its development. To many People with Parkinson’s, Amgen’s handling of GDNF is the prime example of how-not-to conduct a clinical trial.
Kelly
This is so sad - and so typical! 15-20 years ago, Amgen was the place to be! Eveyone wanted “in” at Amgen. They treated their people as people, respected a life outside of the job, had many benefits and sponsored many family functions. Then, like all of corporate america - it came down to just the almight dollar for the top dogs. Disgusting!! Something that was so good -went sooo wrong!!! Shame on you!!
Amos
I wonder how many of the 2,300 layoffs could have been spared had Sharer been able to part with his private jet alone?
I guess he would rather not have to travel with the “common folk” than secure the futures of some the employees who earned him that fat salary.
What a true piece of human garbage.
T. Archer
I am leaving the organization after almost 7 years at Amgen. In the time I have been here I have seen the best of the best, and the worst of the worst. Amgen has done a complete 180 - from the place that everyone wanted to work, to now the place that is just a stepping stone.
The culture that I fell in love with is gone. The heart has been ripped from the company; replaced by money grubbing by the incompetent executive management staff.
I agree with Amos - how many jobs could have been saved if Kevin grounded his planes? (The schmuck has three of them) Or - did not vote in bounuses for the executive staff during layoffs? Or - did not let his girlfriend jet off of Europe for shopping sprees on a compnay funded jet?
Yes, the spirit of shared sacrifice is alive and well here at Amgen. Kevin and his hot-bunking ex-navy cronies expect to live large while the organiztion economizes. This is purely unethical.
Amgen has become disfunctional big business. To get ahead in this company one must affix one’s lips to the arse above them, play the politics, and throw out personal morals. I just don’t fit into that mold, so I am leaving for 20% more money to a better, more nimble organization.
I will watch intently from afar to see how long Kevin lasts, and to see exactly when the CIO Tom Flanagan pulls his golden parachute after dessimating IT by outsourcing, and also to see the “stellar” performance of D-Mab.
The only hope for the company now is a hostile takeover, or possibly a shareholder lawsuit to remove Kevin and his board of cronies.
It is a shame to see something that was so special turn into something so terrible.