|Valeant Pharmaceuticals International, Inc. - VRX.t is a pharmaceutical company that offers a diverse product portfolio with focus on branded pharmaceuticals, branded generics and over-the-counter products.|
The Globe and Mail reports in its Monday edition that some major shareholders are growing frustrated with the way companies are doling out share units as a major part of chief executive officer pay. The Globe's Janet McFarland writes that institutions are voting against pay packages at several large companies this year over concerns about equity grants that are oversized or poorly linked to performance. The Ontario Teachers' Pension Plan, for example, voted against pay practices at Valeant this spring over concerns about the $63-million pay package awarded to new CEO Joseph Papa, which included a $42-million grant of share units and $10-million in stock options (all figures U.S.). He also received a $9.1-million bonus for 2016 performance. Mr. Papa was hired in 2016 to replace CEO Michael Pearson, who was awarded $140-million in new share units in 2015, which ended up expiring worthlessly after he was replaced last May during an investigation into Valeant's drug-pricing policies. Teachers was not alone. The company received only 68-per-cent support for its pay practices at its annual meeting in May, with the Canada Pension Plan Investment Board among other big investors who voted against the plan.