Valeant has been in hot water lately. In late March, it announced its Mr. Pearson would leave the company. Mr. Pearson is expected to testify before a Senate committee this month regarding his company’s drug price hikes.
Here are four things to know about Mr. Pearson’s compensation, according to The New York Times.
1. Through shares and options, Mr. Pearson owned almost 3 percent of Valeant, which amounted to more than $2.5 billion at the peak of Valeant’s stock trade.
2. Mr. Pearson’s long-term awards plan outlines how he received more stock shares if shareholder return grew higher. A 2011 agreement highlights how the Valeant CEO “would get zero ‘performance’ shares if Valeant’s stock price did not go up by at least 15 percent a year over the following three years,” according to the report. Upon the stock price hitting that 15 percent return, Mr. Pearson would receive 120,000 shares. At a 60 percent return, he’d receive 480,000 shares.
3. Also in the 2011 long-term agreement, Mr. Pearson received “an outright grant of 500,000 stock options,” a significant and generous amount, according to the report.
4. Even though Valeant’s stock prices have dropped considerably, Mr. Pearson’s holdings are at more than $200 million, according to the report.
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