The story points out the difference between this practice and the much-discussed “pay-for-performance” initiative, which grants hospital and healthcare leaders raises for meeting pre-determined goals and improving the health of their organizations.
According to the report, Johnson & Johnson’s CEO William Weldon received a 3 percent pay raise on Jan. 1, hiking his salary from $1.86 million to $1.92 million. The raise came after a year of Johnson & Johnson product recalls, that cost the company $900 million.
GlaxoSmithKline CEO Andrew Witty’s base pay increased by 52,000 pounds in 2010, according to Daily Finance. Last month, the company posted a fourth-quarter net loss because of legal charges related to the sale of its type 2 diabetes drug Avandia.
Read the Daily Finance report on pharmaceutical CEOs.
Read more on CEO compensation:
–California’s Grossmont Healthcare Sees $200K Raise for Increase in Duties
–5 Recent Disclosures on Executive Compensation
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