Here's how much money it took for Perrigo's ex-CEO to leave for Valeant
By Emma Court
Published: Apr 28, 2016 12:46 p.m. ET
Joseph Papa set to receive about $65 million this year
Paramount/Courtesy Everett Collection
EmmaCourt
When news that Perrigo Co.'s then-chief executive officer, Joseph Papa, would be leaving to helm troubled Valeant Pharmaceuticals International Inc. first emerged, it stood to reason that Papa would be rewarded handsomely for the move.
But it's now become clear just how handsomely: about $64.7 million this year, according to Bloomberg, with the vast majority of it in company stock and options. The estimate is based on Valeant's closing share price Wednesday.
By contrast, outgoing Valeant US:VRX CEO Michael Pearson could make up to $6 million this year: a $2 million base salary and a bonus of up to $4 million, an amount approved by the board April 21, according to Street Insider.
The bulk of Pearson's bonus — 75% — is contingent on "the achievement of certain corporate performance metrics," with the remaining quarter relying on Pearson helping Papa's transition.
Read more: Perrigo CEO Joseph Papa resigns, issues profit warning
Papa's compensation begins with a base salary of $1.5 million, with the incoming CEO eligible for a bonus of up to $2.25 million a year, according to Street Insider.
Like Pearson, 75% of Papa's bonus opportunity is based on meeting "corporate financial metrics," with the last 25% based on meeting "strategic metrics determined by the talent and compensation committee of the board... after consultation with Mr. Papa."
The employment agreement also includes a one-time payment of $8 million for the Perrigo PRGO, +0.00% equity Papa gave up by leaving.
See: New Valeant CEO Papa may step in midway through accounting madness
Instability at $VRX demands that a (rational) CEO receive significant compensation to leave stable company. $PRGO https://t.co/ph4jRmlDCi
— Michael Tannenbaum (@MikeTannenbaum) April 28, 2016
Then there's the various stock and stock options awards: 373,367 restricted share units, plus $10 million in stock options, plus 933,416 in performance-based restricted stock units.
Related: Former VW CEO's $8 mln compensation spurs anger
In contrast, Papa's full-year salary at Perrigo was $11.5 million in total, according to The Wall Street Journal.
Emma Court
Emma Court covers healthcare for MarketWatch from New York. You can follow her on Twitter @EmmaRCourt.
PRGO
Perrigo Co. PLC U.S.: NYSE: PRGO