Updated at: 04/08/2013 9:05 PM
By LINDA A. JOHNSON
Amgen Inc.’s new CEO Robert A. Bradway, who took the helm of the biotechnology giant in May, nearly doubled his salary last year.
Bradway, who was promoted to chief executive from chief operating officer on May 23, saw his compensation rise to $13.6 million from $7.1 million in 2011, according to an Associated Press analysis of a company regulatory filing
Last year, Bradway, 50, was paid a salary of $1.26 million and received stock awards worth $8.57 million, incentive payments of $3.32 million and miscellaneous compensation totaling $420,059. That included nearly $314,000 in retirement plan contributions, $65,000 for personal use of company aircraft, more than $20,000 for his personal expenses and those of guests during business travel, and $15,000 for financial planning services.
Amgen, the world’s biggest biotech company by revenue, reported the figures Monday in a proxy statement filed with the Securities and Exchange Commission ahead of Amgen’s annual meeting on May 22.
The company, based in Thousand Oaks, Calif., stopped granting stock options to top executives starting in 2012.
Former CEO Kevin W. Sharer, who stepped down from his seat on Amgen’s board when he retired on Dec. 31, 2012, received compensation totaling $9.13 million last year.
Sharer was paid a 2012 salary of $1.81 million and received stock awards worth $3.66 million, incentive payments of $2.31 million and miscellaneous compensation totaling $1.36 million. That included $801,000 in retirement plan contributions, nearly $262,000 for personal use of company aircraft, more than $38,000 for his personal expenses and those of guests during business travel, $15,000 for financial planning services and more than $255,000 for secretarial, information technology and travel support. Much of that support runs through 2017.
The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive’s stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company’s stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.
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(Copyright 2013 by The Associated Press. All Rights Reserved.)