UPDATE: Pfizer Rewards Executives For Closing Wyeth Deal
October 28 2009 - 4:28PM
Dow Jones News
Pfizer Inc. (PFE) rewarded two top executives for helping to
pull off the drug maker's $68 billion acquisition of Wyeth earlier
this month.
Pfizer's board on Oct. 22 approved special cash and equity
awards to Chief Financial Officer Frank D'Amelio and Senior Vice
President Ian Read, who heads Pfizer's biopharmaceutical unit, "to
recognize their performance and leadership in connection with the
successful completion of the acquisition of Wyeth" on Oct. 15,
Pfizer disclosed in a regulatory filing Wednesday.
D'Amelio's award is valued at $1.2 million, while Read's is
valued at $1 million. Half of each executive's award was paid in
cash on Oct. 26, and the other half will be paid Oct. 30 in the
form of two different kinds of equity derived from the value of
Pfizer shares.
The cash portion is subject to repayment by each executive if
his employment is terminated for cause or he voluntarily terminates
employment prior to Oct. 30, 2010.
The equity portion is based on the fair market value of Pfizer
shares on Oct. 30 and is convertible into Pfizer shares at later
dates.
Pfizer spokeswoman Joan Campion said Pfizer has rewarded
employees across the company in connection with the Wyeth deal, but
disclosed those for D'Amelio and Read because they were among the
highest-paid executives whose compensation is detailed in Pfizer's
proxy statement.
She said D'Amelio and Read "played significant roles in the
completion of the transaction."
Other top-paid Pfizer executives, including Chief Executive
Jeffrey Kindler and drug research chief Martin MacKay, weren't
mentioned in Wednesday's disclosure of awards in connection with
the Wyeth deal.
Pfizer has said it plans to reduce the combined entity's work
force by about 15%, or nearly 20,000 jobs. Some Wyeth jobs were
eliminated within days after the deal's closing.
Shares of New York-based Pfizer were down 7 cents at $17.19 in
late trading.
-By Peter Loftus, Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com