ELAN Corporation?s CEO to leave with a USD 49 million golden parachute!

Having hit the headlines in June 2013 with a controversial rejected tender offer from ROYALTY PHARMA, ELAN’s Corporation is back on the financial front page. This time, a quite typical feature of pharmaceuticals group, ECGS points to a strong case of greed and shareholders neglect. ECGS had reiterated its concerns in the past two months over Elan’s corporate Governance practices (Board independence), its remuneration levels (2012 CEO’s total remuneration was USD 9,7million) and the use of antitakeover devices at ELAN following ROYALTY PHARMA public offer. Kelly Martin, CEO, having basically and successfully sold out most of the ELAN business with a recognized positive impact on the share price has been entitled by the Board to a payout of three times his yearly salary and maximum bonus plus the vesting of share options worth USD 49 million. This announcement came after the confirmation last week that the company will be acquired by PERRIGO, a US Biotech Group for USD 8.6 billion.

UK unions and proxy advisors have condemned this unacceptable and unjustified payout, even a Congress spokesman expressed his indignation.
Worse here the Elan shareholders’ vote is clearly not respected by the Directors as   Kelly Martin’s remuneration policy was voted down at last AGM in May 2013.

 London, 07/08/2013