Suppose you are a member of the board of directors of a small or medium-sized biopharmaceutical company that has just been or is about to be commercialized, and you will certainly hope that there will be a CEO (CEO) who can provoke commercialization and achieve certain major goals in the future.
Who will make the board proud and save you from disaster?Who will spur continued stock price growth?The traditional approach is to find someone who has worked on the executive boards of large pharmaceutical companies.But how much does it cost?Four examples are selected to illustrate the costs and possible rewards of mining such CEOs.
These four are Liz Barrett (formerly President of Pfizer Global Oncology, joined Novartis in January 2018, and currently CEO of Urogen); Mark Mallon (formerly Executive Vice President of AstraZeneca Strategy, currently Business Operations Officer of Ironwood); Jackie Fouse (formerly Chief Operating Officer of Celgene, Vice President of Roivant, and currently CEO of Agios); Daniel O'Day (formerly CEO of Roche Pharmaceuticals, and soon to be CEO of Gilead).
Liz Barrett, 56, CEO
Company: Urogen Company Market Value: 8.2.9 billion U.S. dollars Original position: Novartis Oncology Head salary: 700,000 U.S. dollars Contract bonus: 300,000 U.S. dollars 2019 bonus: 100% salary cap, 50% guarantee holding stock: 317,065 common shares (closing price on January 4 51.$46, valued at $16.3 million)
Option: 277, 432 common stock, exercise price 47.$57/share
All options to hand (Vested) Time: Greater than 3 years
Editorial Comments: UroGen was founded in 2004 and is headquartered in Ra'anana, Israel. It is a clinical stage biopharmaceutical company focused on the development of urological pathology therapies.From the perspective of stock potential, it is not difficult to find that the cost of recruiting Barrett is high, but no one questions the price that Urogen has paid for this because Urogen is expected to be approved for the first cancer treatment drug in the near future.With breakthrough therapies and phase III data, Barrett believes that Urogen stock options will perform well within three years.If there is a buyout, she may not have to wait.Urogen executive chairman Arie Belldegrun made a lot of money selling Kite to Gilead, and he wants the executive team to become millionaires with his options.
Mark Mallon, 56, CEO
Company: Ironwood Company Market Value: $1.8 billion
Original position: Vice President, Strategic Pay, AstraZeneca
Contract bonus:$880,000 (back dial clause)
Stock: Total $3.5 million option (once he officially became CEO)
Restricted Stock Unit (RSU): Total $3.5 million (when he officially became CEO)
Total Option to Hand (Vested) Time: Over 4 years Editor's Comment: Peter Hecht founded Ironwood and decided to split it under considerable pressure. Mark Mallon, who was dug up from AstraZeneca's executive committee, will be responsible for the operation of the split R & D business.Strictly speaking, Mallon is still equivalent to being a senior adviser to the company.But once he is officially ceo, the stock will add a lot.
Jackie Fouse, 57, CEO
Company: Agios Company Market Value: $2.8 billion Original position: Vice President Roivant, Chief Operating Officer of Celgene Pay: 72.$50,000 Contract bonus: The 8-K document does not mention
Annual bonus: 65% of salary
Stock: $14 million
Editorial Comment: Agios is one of the biotech companies that successfully completed the first round of drug development work.Executive Chairman David Schenkein is a top representative in biotechnology and Agios has worked closely with Celgene.
Daniel O 'Day, 54, CEO
Company: Gilead Original position: Roche Chief Executive Officer Company Market Value: $8.8 billion Pay: $1.6 million, prepaid cash $5.67 million bonus: 150% Pay
Stock: $8.5 million, Option $3 million
RSU: $3 million + Performance-based $6 million
Additional salary: $0.75 million/year subsidy for 5 years
All options to hand (Vested) Time: more than 4 years
Editorial Comments: After Daniel O 'Day joined Gilead, the annual compensation plan may exceed 30 million US dollars.Behind the high salary is also the high expectations of the board of directors, hoping that he can lead Gilead to maintain large-scale growth of the AIDS business, so that the performance of CAR-T drugs is getting better and better, and lead colleagues in the NASH field.
Source: Endpoints News.How much does it cost to hire a top Big Pharma Exec to run a biotech?Here are 4 (very) fresh samples.
Author: John Carroll