- The Washington Times - Wednesday, April 1, 2009

NEW YORK (AP) - Watson Pharmaceuticals Inc. President and Chief Executive Paul M. Bisaro’s compensation fell by 50 percent in his first full year at the helm of the drug developer on a steep decline in stock compensation, according to an Associated Press analysis.

In 2008, Bisaro received just under $4.1 million in overall compensation, according to a Securities and Exchange Commission filing Tuesday. He became president and CEO in September of 2007 after Allen Chao stepped down.

His salary surged to $1 million from $303,848, because the 2007 figures included only about four months in the leadership position. Bisaro’s performance bonus tripled to $997,200, and he received just under $39,000 in perks, which included a car allowance and retirement benefits.

Nearly half his compensation, though, came in the form of restricted stock units. The company valued that compensation at just over $2 million on the day it was granted. The year before, he received just under $7.5 million in restricted stock and options when he was hired in September.

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.

In 2008, Watson’s profit rose about 69 percent to $238.4 million on a 26 percent boost in revenue to about $2.5 billion.

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