Biopharma executives make up 19 of the 200 highest-paid CEOs of large publicly traded U.S. companies, according to an annual collaborative report from Equilar and The New York Times. The survey spotlights total compensation for public companies that have a market cap of at least $1 billion based on fiscal year-end results.
And when you expand the universe to include other healthcare-related companies, that number increases to 31.
Two of the highest paid CEOs — Leonard Schleifer of Regeneron and Jeffrey Leiden of Vertex Pharmaceuticals — have overseen the approval and growth of high-priced drugs. Regeneron’s Eylea for age-related macular degeneration grossed $1.735 billion last year. And although Vertex is not a highly profitable company in terms of EBIDTA, it has established a unique foothold in the specialty marketplace with Kalydeco, which costs more than $300,000 per year.
Not surprisingly, many of the highest-paid executives are from the largest pharma companies, including BMS, Merck, J&J, Gilead, Pfizer, AbbVie and Abbott Labs; however, top-paid biopharma CEOs also head up less well-known companies, such as Anacor Pharmaceuticals, which is developing small-molecule drugs using its proprietary boron chemistry platform.
As global pharmaceutical sales hover at the $1 trillion mark, biopharma CEOs are navigating development, business and regulatory challenges — and for the most part, they are succeeding.
Following is the list of the 19 highest-paid biopharma executives. Note that total compensation includes base salary, cash bonuses, perks, stock awards and option awards.
1. Leonard S. Schleifer, Regeneron
Total compensation: $41,965,424
Rank in survey: 15
2. Jeffrey Leiden, Vertex Pharmaceuticals
Total compensation: $36,635,468
Rank in survey: 18
3. Herve Hoppenot, Incyte
Total compensation: $32,691.026
Rank in survey: 19
4. Martine Rothblatt, United Therapeutics
Total compensation: $31,581,896
Rank in survey: 24
5. Lamberto Andreotti, Bristol-Myers Squibb
Total compensation: $26,116,771
Rank in survey: 37
6. Robert J. Hugin, Celgene
Total compensation: $24,236,113
Rank in survey: 45
7. Kenneth C. Frazier, Merck & Co.
Total compensation: $21,387,205
Rank in survey: 66
8. Leonard Bell, Alexion Pharmaceuticals
Total compensation: $20,570,703
Rank in survey: 68
9. Alex Gorsky, Johnson & Johnson
Total compensation: $30,383,164
Rank in survey: 70
10. John C. Martin, Gilead Sciences
Total compensation: $18,957,994
Rank in survey: 84
11. George A. Scangos, Biogen
Total compensation: $18,544,735
Rank in survey: 88
12. Ian C. Reid, Pfizer
Total compensation: $18,016,498
Rank in survey: 92
13. Alan H. Auerbach, Puma Biotechnology
Total compensation: $17,797,606
Rank in survey: 98
14. Richard A. Gonzalez, AbbVie
Total compensation: $16,961,462
Rank in survey: 108
15. Miles D. White, Abbott Laboratories
Total compensation: $16,179,509
Rank in survey: 84
16. Paul L. Berns, Anacor Pharmaceuticals
Total compensation: $14,132,317
Rank in survey: 164
17. Robert A. Bradway, Amgen
Total compensation: $13,961,667
Rank in survey: 168
18. G. Frederick Wilkinson, Impax Laboratories, Inc.
Total compensation: $12,978,870
Rank in survey: 185
19. Robert L. Parkinson, Jr., Baxter International
Total compensation: $12,835,618
Rank in survey: 192