Amgen CEO gets 11 percent boost in compensation
Amgen Inc. Chairman and CEO Kevin Sharer's compensation jumped 11 percent to just over $15.3 million in 2009, as revenue continued lagging while the biotechnology bellwether focuses on moving a potential blockbuster drug to the market.
The company, based in Thousand Oaks, Calif., has been struggling with sales for the past several years because of safety issues with its anemia drugs. Stricter warnings have cut away at revenue, pushing the figure down 2 percent to $14.64 billion in 2009. Shares also slipped 2 percent during the year.
Meanwhile, Sharer's salary rose 7.7 percent to $1.7 million while performance bonuses fell 2.2 percent to $3.8 million, according to a proxy statement filed with the Securities and Exchange Commission. Other compensation jumped 49 percent to $791,738, mainly on retirement compensation and perks including company jet travel.
The bulk of his compensation, which is in stock options and restricted stock, rose 16 percent to just under $9.1 million.
Sharer, 62, has been the company's CEO and president since May 2000 and chairman since January 2001.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
Amgen expects a Food and Drug Administration decision on its osteoporosis drug denosumab by July 25. It hopes to eventually sell the drug as a treatment for osteoporosis caused by menopause and to prevent or treat bone loss in patients with breast or prostate cancer.
Wall Street has been viewing the drug, which will be marketed as Prolia, as the revenue growing product needed to rebuild sales following the drop-off because of safety issues around the anemia drugs Aranesp and Epogen.
Amgen will host its annual shareholder meeting May 12 in Westlake Village, Calif.