Press Release

LONDON: 9th March 2005.  THE AVERAGE pharmaceutical company executive director in the UK receives 39 percent of their total remuneration package in the form of a bonus, according to Piribo Ltd, which today released its report UK Pharmaceutical Executive Pay - Insight into Director Remuneration. The report found that the average bonus paid to an executive director on the board of a UK pharmaceutical company is £163,000 while the median value is £55,000. Most bonuses are performance-orientated dependant on preset targets of net income, turnover or even earnings per share before amortisation (EPSA).

“The bonus is the golden egg of many executives’ pay packet as some executives can more than double their basic salary,” said Prashant Tandon, lead analyst for the report. “But with the recent intense institutional shareholder scrutiny of top pharmaceutical executives’ pay, these top dogs are under more pressure than ever to justify their earnings”.

The survey found that average total earnings of a pharmaceutical company executive director is £418,000. For non-executives directors, the average total earnings stood at £42,000.

UK Pharmaceutical Executive Pay - Insight into Director Remuneration details the remuneration arrangements, including salary, bonus, pension and benefits, of 342 board members of UK quoted pharmaceutical companies. These companies have annual sales of over £68billion and profits after tax of £10 billion. They employ approximately 410,000 people and have an aggregate market capitalisation of £95billion.

The report highlights some other interesting findings including:

·         Women are under-represented on the board of UK pharmaceutical companies. Only six percent of the boards are female. The highest paid woman earns a tenth of the highest paid male executive.

·         For an industry that thrives on research and development, only 43 percent of the companies have a Scientific Officer or R&D Director on their board compared to 88 percent of boards having a Finance Directors. Also the average pay package of the Chief Scientific Officer (CSO) is the among the lowest for all executives, at 36 percent of that paid to Chief Executive Officers (CEOs)

·         There is an income divide. Nine percent of executive directors included in this report earn 35 percent of the aggregate earnings of all the firms.

Notes:

 - Information for this report was taken from company statements and annual reports.

 - Go to www.piribo.com and register for a free copy of the Executive Summary of the report U.K. Pharmaceutical Executive Pay - Insight into Director Remuneration. The full report can be purchased for £25.

About Piribo

Piribo is the source for information products concerning the global biotechnology and pharmaceutical industries. For more information visit www.piribo.com or call Piribo.

Last updated on: 27/08/2010 11:40:18