John Martin, the CEO of Gilead Sciences, has scored one of his best years ever in 2014, consolidating his position as one of the best-compensated executives of Corporate America.
Gilead Sciences has set up a hepatitis C treatment, Sovaldi, which can cost patients around $84,000 for a 12-week treatment. The company announced Martin gained $187.4 million from awarded stock options and restricted shares, but also received compensation valued at $18.9 million last year.
John Martin’s 2014 incomes included a $1.6 million salary, stock options worth $5.2 million, stock award valued at $8.4 million and $3.7 million incentive award. Without gains from vested share and exercised stock options, Martin’s compensation increased by 22% from $15.5 million in 2013, according to Gilead’s annual proxy filing.
John Martin is the CEO of the company since 1996 and it’s not the first time he reached this kind of equity gains.
Only two years ago, Martin exercised stock options for a $158.9 million gain and received $4.8 million from vested shares. The year before, in 2012, his earned $95.8 million, while in 2011 he received $54.5 million in 2011, while being compensated with $53.2 million in 2010, according to company documents.
Martin is not the only Gilead Sciences exec to score big 2014 paydays.
Chief Operating Officer John Milligan posted a compensation valued at $8.2 million. He gained $64.7 million exercising stock options and $22 million from vested shares. Chief Science Officer Norbert Bischofberger was paid $6.8 million, and also had a $33 million options gain and an extra $15.7 million in gains from vested shares.
Executive Vice President Gregg Alton posted a $6 million compensation and gained $14.2 million from vested shares and $36.6 million from stock options.
The company has been criticized before for its compensation practices. Gilead’s board responded that it discussed governance issues with its 50 biggest shareholders last year.
“The stockholders with whom we spoke did not raise any specific questions or concerns with respect to our executive compensation program or any compensation-related policies or practices,” Gilead Sciences said.
Approximately 98% of the votes cast were in favor of the company’s executive compensation program, which will remain unchanged for 2015.
Gilead’s entire shareholder return was of 26 percent in 2014, a drop from the 105 percent return in 2013. This year, shares gained more than 40 percent.
Gilead Sciences is a biotechnology giant, founded in 1986, which concentrates its efforts on antiviral drugs to treat patients infected with HIV, pulmonary diseases or hepatitis.
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