Furious Seasons

February 11, 2009

Lilly Execs Make $48 Million In 2008

There's been a lot of news out lately about how Wall Street bankers are pulling down millions in bonuses despite running their banks into the ground, and now it's Big Pharma's turn to look just as brilliant.

According to FiercePharma.com, Lilly's top six execs pulled down $48 million last year in pay and bonuses. This came in a year in which the company lost $2.072 billion due to acquiring ImClone and settling Zyprexa cases. I wonder what Lilly stockholders and employees think of this. I simply cannot fathom how such a few people at the top of the company make so much money when they are losing money for the company. I guess this is the new capitalism or something.

Topping the list was new CEO John Lechleiter, who raked in $13 million in 2008, up 39 percent from 2007. Chairman emeritus Sidney Taurel, who was in charge of the company during much of the Zyprexa scandal, also made $13 million and also gets a $40 million retirement package. Stunning.

Lechleiter, some may recall, was the Lilly exec who in 2003 reportedly pushed for the company to market Zyprexa off-label to kids. It's only fitting that he's paid so well.

Posted by Philip Dawdy at February 11, 2009 01:31 PM

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Comments

If I'm the CEO and I manage to hold my company to a $2 billion loss rather than a $3 billion loss, should I receive a bonus for saving the company a billion dollars?

Posted by: Richard at February 11, 2009 02:58 PM

Richard, you should only get the credit if you do something good for the company but no credit when something bad happens (like the company losing $2 billion)? I suppose that's why the economy is in the shitter. No accountability.

Posted by: Lisa at February 11, 2009 07:50 PM

You must remember that doing good is not what pharmas are all about. The word is greed and those guys have to wear new Gucci loafers every day.

Posted by: Sorrowful at February 11, 2009 08:53 PM

Sorrowful, you sound like the perfect socialist. You might note that most of the world's major drug break through happen in capitalist countries where there is a benefit to producing.

Posted by: Richard at February 12, 2009 01:29 PM

Corporations are in the business of generating profits for their shareholders. How they do it is incidental, no? I agree with this, but it's useful to acknowledge it from time to time.

Posted by: Paul at February 12, 2009 08:05 PM