Friday, August 22, 2008

Genentech plan to retain staff by weighing them down with gold!

Genentech said it may spend $371 million for a bonus plan to retain employees worried about Roche Holding's bid to take over the biotechnology company.

Chief Executive Officer Arthur Levinson would be eligible for $8.74 million on June 30, 2009, under the retention and severance plans adopted by a special board committee for ``substantially all'' of the company's 10,700 employees, Genentech said in a filing today with the Securities and Exchange Commission.

Average payout: $35,000.

Levinson's: $8.74 million!

The bonuses, in lieu of stock option grants, would reduce earnings by 22 cents a share from 2008 to 2010 if fully paid.

Bloomberg

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