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Better incentive package for Martin
The Irish Independent 8 December 2005
ELAN chief executive Kelly Martin was yesterday given enhanced share
options as part of an improved contract in a bid to ensure he does not
leave.
Yesterday, the board of Elan agreed to give him an
enhanced performance-related share options package to ensure he stays with
the drugs company ahead of the expected relaunch of MS treatment Tysabri.
Mr Martin received 750,000 share options at yesterday's New York share
price (which was $11.18 in early trading) vesting over three years.
But his basic pay and benefits package is to stay broadly in line with
current levels.
The pharmaceutical company boss earns $834,000 in salary, and last year
received 200,000 share options with a weighted strike price of $7.47.
Mr Martin's contract arrangements have caused controversy in the past.
During the summer, British corporate governance group Manifest opposed a
severance package for Mr Martin in the event of a change of control at the
company. The British corporate governance specialists asked whether Mr
Martin was effectively being incentivised to sell the company.
It noted that Mr Martin would receive more than $20m in compensation and
share option gains if Elan was to be taken over.
Manifest also accused the company of not treating shareholders equally.
The British shareholder group said it had "concerns over the company's
approach to disclosure, given that it appears to have treated holders of
its American Depositary Receipts differently from those British and Irish
holders of ordinary shares".
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