While executives from Valeant Pharmaceuticals were being grilled by senators for jacking up the prices of several drugs, it became clear that the company’s incoming CEO will get $67 million.
Sen. Claire McCaskill, D-Mo., called the salary decision “tone deaf” as the company was already apologizing for being aggressive in raising the prices of several drugs.
“I think that is difficult for them to manage in the court of public opinion,” she said after a Senate Special Committee on Aging hearing Wednesday.
McCaskill said she understood that it is a “very common thing on Wall Street where they are pegging an exorbitant salary to stock increases.”
Valeant has selected Joe Papas as its next CEO. He will receive $67.4 million in cash, options and restricted stocks for this year, according to Bloomberg.
Part of his salary is to compensate Papas for lost shares of Perrigo, another drug company, to helm Valeant, Bloomberg said.
McCaskill criticized Valeant’s outgoing CEO, J. Michael Pearson, for adopting what she called a business model that goes beyond raising the prices of several drugs.
Valeant board member and investor William Ackman said the company’s board will meet tomorrow to address the company’s high prices and promised that the company will turn over a new leaf.
