Despite Pfizer coming under fire for raising the prices of several drugs last year, the company has given CEO Ian Read a significant pay raise, increasing his total compensation by 61 percent.
According to financial filings from the company reported by Bloomberg, Read received a total compensation package of $27.9 million in 2017—more than $10 million more than the $17.3 million he took home in 2016.
The significant raise was approved by the board of executives at Pfizer. The group reportedly saw the raise as a “compelling incentive” to get Read to remain in his position. As part of the agreement, the CEO will remain with the company through at least March 2019.
Read, who will turn 65 years old in May, will not be allowed to leave Pfizer to take a position at a competitor for a minimum of two years after his agreement with the company concludes.
The increased compensation will include a salary of $1.96 million, a $2.6 million bonus, and $13.1 million in equity awards that are linked to reaching financial goals and certain markers for Pfizer’s stock price.
Another $8 million will come in the form of a special equity award that will vest if Pfizer’s average stock return goes above 25 percent for 30 consecutive trading days. That goal has to be achieved before the end of 2022 for the award to be provided.
While Pfizer’s CEO will likely enjoy the compensation provided by the company’s board, consumers will reportedly be paying more for a considerable number of drugs produced by the company.
FiercePharma reported earlier this year that Pfizer implemented 116 price hikes for drugs it produces between Dec. 15, 2017 and Jan. 3. The list price for the drugs increased anywhere from three percent to 9.46 percent. A total of 20 of those drugs had the list price increased by 9.44 percent. The list of drugs receiving the cost boost included Viagra, Pristiq, Lipitor, Zoloft and Chantix.
An additional study conducted by Financial Times found Pfizer increased the cost of 91 other drugs during the first half of 2017. Those drugs had their cost increased by an average of 20 percent over the course of two waves of price hikes.