The pay-off that BMS's ousted chief executive Peter Dolan (pictured in Halloween mode) will be line for is unlikely to come close to the deals enjoyed by his peers at other Big Pharma CEOs.
Although the company has not released any details as to Mr Dolan's severance package, analysts and compensation experts consulted by Reuters suggest that as he did not secure an employment contract when he became chief executive of the New York-based company in May 2001, the offer made will not be in the multimillions.
Steven Hall, managing director of compensation consultants Steven Hall & Partners, said he expects BMS to pay Mr Dolan between $5-$8 million in severance, based upon a formula of roughly twice his most recent combined salary and bonus.
Mr Dolan also held options on three million B-MS shares, Mr Hall noted, but their combined cash value was only $52,000 at the end of 2005, as a result of the major share price declines the stock had suffered.
Insider's view: oh dear, how sad, never mind!
$5 to 8 mill is plenty, given Peter's track record!
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