Give it Back Katen and Shedlarz!
Pfizer's recently disposed CEO Hank McKinnell had to listen to angry owners chanting, "Give it back, Hank," at Pfizer's most recent shareholder meeting.
Pfizer's former chairman and chief executive made more than $15.5 million a year, on average, for a total of $78 million. He also has a pension package worth $83 million. During this time, shareholders lost 35% as the stock fell to $24.60 from $38.20. All of this according to the MSN article, 5 lousy CEOs who get fabulous pay.
And now when Hank McKinnell is virtually gone, perhaps it is time to look at the people who reported to him.
But first, some background.
Jeff Kindler, Pfizer's new CEO is a newcomer to the company who has not yet been able to take advantage of Pfizer's wealth accumulation program, also called a pension plan, for senior executives.
This is a very undemocratic plan. If a worker has been with the company for 30 years, and her highest average compensation is $100,000, she gets an annual pension benefit of $32,856. That's 33% of her pay.
If her highest annual average compensation, on the other hand, was one hundred times as high, $10 million, she get a pension of $4,180,944. That's 42% of her pay, a percentage about 25% higher than the $100,000 worker.
All of this according to Pfizer DEF14a statement.
So what about Ms. Katen and Mr. Shedlarz, who competed with Mr. Kindler for his CEO job?
Do they also get $83 million, like Mr. McKinnell?
Ms. Katen is fully vested in Pfizer's pension plan and will walk away with a $28 million pension.
And Mr. Shedlarz will walk away with $23.8 million.
All of this according to Pfizer's proxy statement.
With Pfizer stock in free fall and looming employee terminations, maybe what we'll hear at Pfizer's next share holder meeting:
"Give it back Katen and Shedlarz!"
That is if Ms. Katen and Mr. Shedlarz are still there by the next shareholder meeting.