How much does the boss earn – CEO pay at CROs 2010
Following the end of their financial years the big five public clinical CROs (contract research organisations) have detailed executive compensation in regulatory filings. Outsourcing-Pharma has analysed these filings to create the following tables and graphs.
The first table shows the basic salary earned by each CEO. PPD changed leader in 2009 so data for the previous CEO, Fred Eshelman, is used for 2008. The second table shows total pay once bonuses, stock awards and other compensation are factored into earnings.
Finally, the graph shows operating income for each CRO per US Dollar earned by their respective CEOs. All the CROs posted lower operating incomes in 2010 than 2008 but CEO total pay has, generally, been flat or increased over the period, resulting in a downwards trend.
Exceptions are PPD and, to a lesser extent, Icon. Figures for PPD in 2009 are skewed by one-off stock awards that swelled the earnings of incoming CEO David Grange. As such, Grange’s pay dropped in 2010 leading to an uptick on the graph despite a dip in PPD’s operating income.
Further details of factors impacting on full year operating income at each CRO can be found at the following links: Covance (Joseph Herring); PPD (David Grange); Icon (Peter Gray); Kendle (Candace Kendle); and Parexel (Josef von Rickenbach).
All figures are taken from companies’ regulatory filings with the US Securities and Exchange Commission.
