Platinum parachute? Allergan CEO Pyott could get $100M exit fee
- Last November, Actavis struck a deal to purchase Allergan for roughly $66 billion, making it the largest pharma M&A of 2014.
- Although it's not clear whether current Allergan CEO David Pyott will leave, Actavis has stated that it will replace most of Allergan's executives with its own.
- If Pyott is terminated, it triggers an exit package worth up to $100 million.
With the Actavis-Allergan deal closing this year, major turnover in the ranks of Allergan employees, including management, is imminent. But for Pyott, the prospect of leaving is very profitable. He would receive about $89 million in cash and stock in exchange for equity awards that have not yet vested, according to Bloomberg. In addition, he would receive roughly $9.91 million in cash, as well as $2 million in accrued pension and health benefits for three years.
Last year, BioPharma Dive covered what a post-merger Actavis-Allergan might look like, including the fact that, "Although current Actavis CEO Brent Saunders will maintain his position as CEO, the management team will include members of both Actavis's and Allergan's executive ranks."
Admittedly, the idea of having a dual-company management team in place for the long term may not come to fruition. Saunders is making good on his promise to cut layers of bureaucracy, as well as jobs and research programs that the management team deems redundant or unnecessary. The goal: at least $1.8 billion in cuts.