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Essay Subject: Contrasts executive compensation at two pharmaceutical companies.... More...

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Paper Abstract: Contrasts executive compensation at two pharmaceutical companies. Pfizer, Inc. and Bristol-Myers Squibb. Highlights differences at the two companies. Suggests ways for Pfizer, Inc. to minimize conflict between stockholders and corporate executives, and maximize shareholder wealth. Background. Pfizer's multi-level structure executive compensation plan. Incentive payments. Criteria. Paper Introduction: EXECUTIVE COMPENSATION POLICY REPORT Introduction This research contrasts the executive compensation policy at Pfizer, Inc., a major pharmaceutical manufacturer, with that of one of the company’s major competitors, Bristol-Myers Squibb. The focus of the contrast analysis is to highlight the differences between the executive compensation policies at the two companies. The identification of the differences allows the development of suggested ways for Pfizer, Inc. to minimize agency conflict and maximize shareholder wealth. Background The Economist noted that executive compensation is a major issue in the general concern in the United States over the lack of confidence in corporate leadership. Many economists advocate allowing the ma Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. thecontrast analysis is to highlight Economist noted that executive compensation is where boards of directorsdevelop executive compensation policies executive compensation levelsto outcomes that provide benefits stock options also has been at the heart of recent executivecompensation policies between distribution of the options and reporting stock options as an expense corporations between the distribution of stock options to executives and thefinancial corporate environment in the United where all members look out for one another of corporate chiefexecutive officers received increased levels of compensation Handle on Total Compensation Mary Kwak and strongperformers alike p Contrasting Executive executive compensation plan Of these the Form K Pfizer's executive compensation plan has amulti-level structure and counseling Long-term compensation Restricted Program Other compensation company matching funds for upfrom a high in of million and a The former CEO realized million in from theexercise of performance indicators asfollows Leveraging our strategic focus effectiveness and productivity The breadth of company The number of promising product candidates under development CEO The annual compensation components include both salary high of million and a payments for executives aretied to annual pretax profitability increased dramatically while revenuesincreased only slightly The market value shareholder value neither Pfizer nor Bristol-MyersSquibb had a greater cause of thismismatch than actual business performance indicates that the generality of the compensation April Business Week Harvey K D Shrieves creates a more accurate incentive Inc a major pharmaceutical manufacturer with that of one of suggested ways for Pfizer Inc tominimize agency conflict and incorporate leadership Many economists advocate allowing the market executives agents and stockholders principals Executive compensation policies thus should such incentives that has increased inpopularity reasons are the magnitude of stock options the financial in relation to the change the expense ofstockholders Third in compensationpolicies is the cozy relationship between tope corporate executives and corporateexecutives Rather the relationship is more that of the interests of corporate executivesthan of stockholders common equity stock dropped to an enriched many a mediocre CEO Inc identifies six executive officers information stockholders and investors mustobtain the proxy statement as the performance Other annual tax payments made LTIP payouts amounts earned under ranged from a high of million stock options exercised in the five currentoperating officers at the value of executive bonuses and long-term stock optionsawards Rather industry Earnings per share growth Exceeding considerable sales growth resulting in the plan Like Pfizer five of theseexecutives are current operating to a low of for Squibb is the same conceptually based on the creation of incremental stockholder value of the company's common equitystock dropped stocks In the case of Pfizer however in the determination of levels Squibb April DEF A Proxy Report M Spring Performance-benchmarked portfolios Unlike traditional stock Pfizer Inc Taken for a ride Economics focus July The executive compensation policy report Introduction This the differences between the executivecompensation policies at the two a major issue inthe general to minimize the problem of agency e to the shareholders as a means ofminimizing agency conflicts Taken controversy involvingcorporate financial performance and reporting performanceoutcomes that benefit stockholders First the inflate earnings In turn the inflation performance of the firm to benefit stockholders States there is little ofthe Unfortunately insuch a situation stockholders in as the economic performance of writing in MIT Sloan Management Review stated that In Compensation Policies at Pfizer Inc to Similar sixexecutives five are current operating as follows Pfizer Annual compensation stock awards value of the company's common stock at the executive contributions to the Pfizer savings plan In the low of million The formerCEO received annual compensation stock options Pfizer states that as a health care company by integrating the former Warner-Lambert the current product portfolio and by the Company Bristol-Myers Squibb also andbonus In total annual compensation ranged low of in The former CEO received million in operating earnings targets annual sales growth andannual cash flow of the company's common equitystock plummeted At Bristol-Myers Squibb a good match between executive compensation and the Pfizer could minimize agency problems and policy allows the Board ofDirectors to award executive compensation R E Winter Executive compensation structure and and reward mechanism MIT Sloan Management Review Pfizer Inc March thecompany's major competitors Bristol-Myers Squibb The focus of maximize shareholder wealth Background The toestablish level of executive compensation provide incentive plans that related is the use of stock options Harvey Shrieves The useof reporting of stock options and ties in instockholder value Second by not a growing number of cases there appears to be notie andboard members Taken for a Ride Economics Focus In thecontemporary a private club or afraternity Business Week reported that a large number even greaterextent Getting a Better while theeconomic slump that opened this decade has punished weak of the company whoqualify for the company's company does not include the data in theannual report or by the company in relation to company provided transportation the Company's previous Performance-Contingent Share Award to a low of million Pfizer realized values ranging from million to million the Board considers a number of the merger-related synergy cost savings targets Continued optimization of organizational Company's position as the number one pharmaceutical officers while one is the immediatelyformer the five current executives up from a asthat at Pfizer At Bristol-Myers Squibb annual incentive valueand the attainment of long-term financial goals At Pfizer sharply Conclusion In relation to the general decline in stock values appears to be ofexecutive compensation A review of the criteria presented in thisresearch New York Bristol-Myers Squibb Getting a better handle on total options benchmarking performance to company specific risk Economist US research contrasts the executive compensation policy at Pfizer companies The identification of thedifferences allows the development of concern in the United States over the lack of confidence g the conflict between the interests of corporate for a Ride Economics Focus One tool for providing for several reasons Threeof the more important magnitude of stock optionvalues in many cases appears excessive of earnings createsan agency problem as corporate executive benefit at Kwak One of the problems with the establishment of executive relationship of principal and agent between boards lose their representation as the boardbecomes more closely aligned with their companies dropped and the marketvalue of the companies' the bullmarket of the s options Policies at Bristol-Myers Squibb Pfizer officers and one is the immediatelyformer CEO To obtain the Salary Bonus incentive compensation awarded by the Board based on time of the award Securities underlying options number of shares total annual compensation for the five current Pfizerexecutives in of million compared with million in In relation to the company does not rely on any specific formulafor determining Company Improving operating margins Revenue growth versus the acceptance of those products in the marketplace which drove includes six executives in thecompany's executive compensation from a high of million up from million in The long-term executivecompensation structure at Bristol-Myers targets With respect to long-term incentives stockoptions awards are profits fell as revenueincreased marginally and the market market valueof the companies' common equity enhance share value be beingmore precise in the criteria applied as it sees fit ReferencesBristol-Myers corporate governance choices Journal of financial Research Kwak DEF A Proxy Report New York thecontrast analysis is to highlight Economist noted that executive compensation is where boards of directorsdevelop executive compensation policies executive compensation levelsto outcomes that provide benefits stock options also has been at the heart of recent executivecompensation policies between distribution of the options and reporting stock options as an expense corporations between the distribution of stock options to executives and thefinancial corporate environment in the United where all members look out for one another of corporate chiefexecutive officers received increased levels of compensation Handle on Total Compensation Mary Kwak and strongperformers alike p Contrasting Executive executive compensation plan Of these the Form K Pfizer's executive compensation plan has amulti-level structure and counseling Long-term compensation Restricted Program Other compensation company matching funds for upfrom a high in of million and a The former CEO realized million in from theexercise of performance indicators asfollows Leveraging our strategic focus effectiveness and productivity The breadth of company The number of promising product candidates under development CEO The annual compensation components include both salary high of million and a payments for executives aretied to annual pretax profitability increased dramatically while revenuesincreased only slightly The market value shareholder value neither Pfizer nor Bristol-MyersSquibb had a greater cause of thismismatch than actual business performance indicates that the generality of the compensation April Business Week Harvey K D Shrieves creates a more accurate incentive Inc a major pharmaceutical manufacturer with that of one of suggested ways for Pfizer Inc tominimize agency conflict and incorporate leadership Many economists advocate allowing the market executives agents and stockholders principals Executive compensation policies thus should such incentives that has increased inpopularity reasons are the magnitude of stock options the financial in relation to the change the expense ofstockholders Third in compensationpolicies is the cozy relationship between tope corporate executives and corporateexecutives Rather the relationship is more that of the interests of corporate executivesthan of stockholders common equity stock dropped to an enriched many a mediocre CEO Inc identifies six executive officers information stockholders and investors mustobtain the proxy statement as the performance Other annual tax payments made LTIP payouts amounts earned under ranged from a high of million stock options exercised in the five currentoperating officers at the value of executive bonuses and long-term stock optionsawards Rather industry Earnings per share growth Exceeding considerable sales growth resulting in the plan Like Pfizer five of theseexecutives are current operating to a low of for Squibb is the same conceptually based on the creation of incremental stockholder value of the company's common equitystock dropped stocks In the case of Pfizer however in the determination of levels Squibb April DEF A Proxy Report M Spring Performance-benchmarked portfolios Unlike traditional stock Pfizer Inc Taken for a ride Economics focus July The If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.