Scangos made $9.4M for first six months

[Anonymous]

Biogen CEO Scangos made $9.4M for first six months
Boston Business Journal - by Julie M. Donnelly
Date: Friday, March 25, 2011, 2:43pm EDT - Last Modified: Friday, March 25, 2011, 3:01pm EDT

Biogen Idec disclosed that its CEO George Scangos was paid $9.4 million since he began work on July 15, until the end of 2010. That amount included a pro-rated salary of $516,923, a bonus of $1.2 million and stock the company valued at $6.9 million. But the bigger payout in 2010 went to Scangos’ predecessor, Jim Mullen, who received total compensation of $20.3 million, which included his salary for the first half of the year and payouts associated with his departure.

By comparison, Mullen’s total compensation for the full year in 2009 was $10.4 million, and in 2008 it was $11.3 million.

Three directors received cash and stock worth almost $1 million in 2010. They were Eric Rowinsky at $983,877, Stephen Sherwin at $992,127, and Caroline Dorsa at $996,012.

The regulatory documents also disclosed that Scangos would receive a payout of $15.8 million if Biogen were to be acquired.

 

[Anonymous]

I am the one who keeps posting the obvious signs that this company will be bought and torn apart in 2-3 yrs max. The last line of the above article sums that the best. Overall goal is to sell the company at the BOD asking price and get a $16 mill payday then onto another company to become the CEO and get similar income. I would of the same thing wouldn't you??????????????? Take your heads out of the sand. The best thing that keeps happening to you all is the PML which is keeping (kept) the company from being bought. If were not for that this company would have been bought LOOOONG ago.

 

[Anonymous]

scagnos damn it! and yes, i was pretty damn busy!

 

[Anonymous]

Hmmmmm....I wonder why Icahn isn't making a push for more seats now??? He knows he has the CEO to do what he says thats why......Bye Bye Biogen.............

For the first time since 2007, the activist investor isn’t nominating new candidates to contest for Biogen’s board at its annual shareholder meeting in June. That means he seems to like his hand – which includes three board seats and the drug maker’s new chief executive George Scangos.

“Under George’s leadership, the company has obviously made significant progress,” Alexander Denner, a managing director of Icahn Partners LP, said in an interview Monday. Denner is a Biogen board member and played a key role in recruiting Scangos last year.

The move (or lack thereof) doesn’t mean Icahn won’t push for change in the future, but he has spent years pressuring the company, gaining three board seats and a CEO to his liking for his efforts. Since joining in July, Scangos has pushed for numerous changes, including a sweeping restructuring that implements many of Icahn’s previous suggestions.

Given the company’s performance, Icahn doesn’t have a lot to complain about: Biogen shares have risen 22% in the last year and recently traded north of $70, at their highest level in more than three years.

The window to nominate directors to Biogen’s board is normally earlier in the year, but a recent board proposal to eliminate the staggered-election structure of the board, allowing for the annual election of every director, reset the clock. The deadline to nominate alternative directors expires at the end of business Monday, but Denner said Icahn’s group won’t propose alternative directors.

Although it needs to be approved by shareholders at a June 2 meeting, removing the staggered board would make it easier for the board’s composition to change. Currently, just one-third of Biogen’s 12-member board is elected each year.

Prior to Scangos’s arrival last summer, Icahn had nominated directors to the company’s board for three years in a row and harshly criticized the company’s management. He won two seats in 2009, after losing in the prior year. Last year, he reached a settlement for a third director.

Icahn began pushing for change following Biogen’s failure to sell itself in 2007 at his urging. He later claimed that the company ran a flawed process designed to avoid a deal.

At the end of last year, Icahn owned about 16.1 million shares, or about 6.7% of the shares outstanding.

 

[Anonymous]

Brilliant observation. This is what's happening in this industry. What's your point?

 

[Anonymous]

My point is Mullen would have never let this shit happen. He fought this bullshit so Biogen could stay independent and be a great place to work. Scangos was hand picked by Icahn's crew to do what Mullen wouldn't do. Sell the company to a bunch of big pharma ass clowns. Get ready for your POD meetings. Hahahahahaha.................