Bristol-Myers Squibb Co.'s former Chief Executive Officer Peter Dolan will receive cash severance of $1.2 million plus pension benefits valued at $9.5 million. Dolan, 50, was eligible for 51.5 weeks of salary based on his 18 years of service, the New York-based drugmaker said today in a filing.
He will also be retained as a consultant through April 2007 for a monthly fee of $50,000.
The executive was fired Sept. 12 after his botched effort to prevent cheaper generic copies of the company's best-selling drug, the heart pill Plavix, led to antitrust probe. Under the severance plan, Dolan agreed to release any claims against Bristol-Myers over his departure, not compete with the company for a year and cooperate with any inquiries or legal proceedings linked to his employment.
Interim chief James Cornelius will be paid $1.25 million in base salary and will be entitled to a bonus of as much as 170 percent of base pay for as many as 15 months, Bristol-Myers said.
Shares of Bristol-Myers rose 6 cents to close at $24.53 in New York Stock Exchange composite trading. The stock reached a 52-week low of $20.24 on Aug. 11 after cheaper generic copies of Plavix went on sale.
Former general counsel Richard Willard, who also left the company Sept. 12, will receive severance of $1.4 million, equal to twice his base salary.
Dolan will get accelerated vesting of some stock options and will receive partially subsidized retiree health benefits at the age of 55. He won't receive a bonus for 2006.
Source: Bloomberg
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