The former CEO of Pfizer Pharmaceuticals, forced into early retirement, will receive retirement benefits worth $180 million. $180 million, while the company is slashing costs by at least $4 billion and laying off thousands of employees.
NEW YORK – Pfizer Inc.’s former chief executive, Henry A. McKinnell, who was forced into an early retirement in part because of investor anger about his rich retirement benefits, will get every penny of it and more, a new regulatory filing shows.
McKinnell’s package, which the company disclosed in a filing with theThursday, totals more than $180 million. It includes an estimated $82.3 million in pension benefits, $77.9 million in deferred compensation, and cash and stock totaling more than $20.7 million.
The total value could grow to almost $200 million if McKinnell gets a $18.3 million stock award, but that is contingent on the future performance of the stock of the world’s largest drugmaker.
The company says it is contractually obligated to pay the benefits, even though its stock price fell as much as 40% during McKinnell’s tenure as CEO. And he gets all this on top of what he was paid while he was running the company — into the ground.
McKinnell earned $5.97 million in salary and bonus in 2005. When the company’s proxy was filed with the Securities and Exchange Commission in March, his total compensation for the year was valued at $15.88 million, including salary, bonus, stock options, stock grants and benefits. The value of options and stock varies with the share price.
McKinnell’s perquisites in 2005 included $8,500 in financial counseling, $65,120 for use of a car and driver and $43,855 for personal use of company aircraft, according to the proxy.
Fortunately, someone in the management wised up, and the new CEO is working without a contract. Unfortunately, lots of Pfizer employees and their families will have not-so-happy holidays so Mr. McKinnell can continue to pay for financial counseling and a car and driver.