Just came across this... article's from Dec 2016 , but argues strongly that it's in Vounatsos interest to sell.
Biogen’s announcement Monday that chief commercial officer Michel Vounatsos will take over as CEO has rekindled a debate over whether the Cambridge biotech could be acquired in its current, precarious state.
But at least one thing is clear: Vounatsos stands to personally benefit if Biogen (Nasdaq: BIIB) is purchased
A look at Vounatsos' employment agreement, which was posted in a regulatory filing late Monday, shows that Biogen is giving its new chief generous protections in the event of a “change of control” — corporate-speak for an acquisition.
If Biogen is acquired, and Vounatsos is fired or resigns within two years of the deal, he would receive a severance payment equal to two times the sum of his base salary and target bonus. Currently, that would amount to nearly $5 million. By comparison, his severance payment would be around $3.7 million — more than $1 million less — if he was terminated before an acquisition occurred, or more than two years afterward.
If Vounatsos leaves Biogen within two years of an acquisition, his pro rata annual bonus would be based on a predetermined target rather than the company’s actual performance. In addition, he would receive two years of medical coverage rather than 1.5.
Outgoing CEO George Scangos had similar provisions written into his employment contract, but he did not strike a deal. The Wall Street Journal reported in August that Merck & Co. (NYSE: MRK) and Allergan (NYSE: AGN) had expressed interest, although Allergan later said it was not interested.
In a research note Monday evening, Leerink Partners Geoffrey Porges called the protections for Vounatsos “significant” given that he has only been at Biogen since April. Vounatsos previously spent 20 years at Merck, most recently serving as head of the company's primary care business line.
“Taking the new position is certainly a win for him personally, and provides him personally with more rewards in the event of a change in control,” Porges wrote. However, he added, “It does not provide materially more, or less, evidence that the company would be sold if a bidder made an attractive offer.”
http://www.bizjournals.com/boston/news/2016/12/20/why-biogens-new-ceo-stands-to-gain-from-an.html
Biogen’s announcement Monday that chief commercial officer Michel Vounatsos will take over as CEO has rekindled a debate over whether the Cambridge biotech could be acquired in its current, precarious state.
But at least one thing is clear: Vounatsos stands to personally benefit if Biogen (Nasdaq: BIIB) is purchased
A look at Vounatsos' employment agreement, which was posted in a regulatory filing late Monday, shows that Biogen is giving its new chief generous protections in the event of a “change of control” — corporate-speak for an acquisition.
If Biogen is acquired, and Vounatsos is fired or resigns within two years of the deal, he would receive a severance payment equal to two times the sum of his base salary and target bonus. Currently, that would amount to nearly $5 million. By comparison, his severance payment would be around $3.7 million — more than $1 million less — if he was terminated before an acquisition occurred, or more than two years afterward.
If Vounatsos leaves Biogen within two years of an acquisition, his pro rata annual bonus would be based on a predetermined target rather than the company’s actual performance. In addition, he would receive two years of medical coverage rather than 1.5.
Outgoing CEO George Scangos had similar provisions written into his employment contract, but he did not strike a deal. The Wall Street Journal reported in August that Merck & Co. (NYSE: MRK) and Allergan (NYSE: AGN) had expressed interest, although Allergan later said it was not interested.
In a research note Monday evening, Leerink Partners Geoffrey Porges called the protections for Vounatsos “significant” given that he has only been at Biogen since April. Vounatsos previously spent 20 years at Merck, most recently serving as head of the company's primary care business line.
“Taking the new position is certainly a win for him personally, and provides him personally with more rewards in the event of a change in control,” Porges wrote. However, he added, “It does not provide materially more, or less, evidence that the company would be sold if a bidder made an attractive offer.”
http://www.bizjournals.com/boston/news/2016/12/20/why-biogens-new-ceo-stands-to-gain-from-an.html