Pharma’s Cutting Edge

The cost of firing a CEO

November 5, 2006 at 1:25 pm · Filed under For Investors

We now know how much it costs to fire your CEO–minimum–if you’re the Board of a major Pharma company: roughly a year’s salary. That’s how much Peter Dolan will receive from BMS in cash severance. He’ll also take away another $9M in pension benefits for his 18 years of service with the company. During his tenure as CEO of BMS, Dolan took home a total of $26M in salary and bonus COMP (excluding options exercised). At the same time, BMS’ market value fell by 55%, with most of the decline coming during the first 6 months of Dolan’s tenure.

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The cost of firing a CEO

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