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UK Pharmaceutical Executive Pay

Insight into Director Remuneration

Publication Date   March 2005
Publisher   Piribo
Product Type   Brief
Pages   36
ISBN Number   not applicable
Product Code   PBO001
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Price £25.00

approximately: $50 | €32

Summary


Free: View the Executive Summary and Key Findings.

UK Pharmaceutical Executive Pay - Insight into Director Remuneration represents an effort to understand the pay of executive directors and non-executive directors working in the top 40 UK public biotechnology, healthcare and pharmaceutical companies.

The report answers a number of questions including:

• What are the remuneration packages of the directors of a pharmaceutical company?
• Which are the ten highest and ten lowest paying UK pharmaceutical companies?
• What are the main components of the director’s remuneration and what is the share of each in total earnings?
• Is there any relation between salary, company size and performance?
• Is there a relationship between salary and line of business (sector)?
• How are the remuneration packages constructed?
• How do UK pharmaceutical companies’ director pay packages compare to other industries?
The report is limited just to companies headquartered or publicly listed in the United Kingdom.

The survey is based on the salary levels and bonus arrangements for 342 board members, 155 executive directors, and 187 non-executive directors. Details of the jobs grouped are:
• Chairman
• Chief Executive Officer (CEO)
• Chief Financial Officer (CFO)
• Chief Operating Officer (COO)
• Chief Scientific Officer (CSO)
• Non-executive directors

The companies included in this report have annual sales of over £68bn and profits after tax of £10bn. They employ approximately 410,000 personnel and have an aggregate market capitalisation of £95bn.

Companies included in the report:

Acambis Plc - Alliance Unichem Plc - Amersham Plc - Antisoma Plc - Ark Therapeutics Group Plc - AstraZeneca Plc - Axis-Shield Plc - Biofocus Plc - Boots Group Plc - Camellia Plc Cenes Pharmaceuticals Plc - Cyprotex Plc - Cytomyx Holdings Plc - Dechra - Pharmaceuticals Plc - Evotec Oai Ltd - Fulcrum Pharma Plc - Genemedix Plc - Genzyme Ltd - GlaxoSmithKline Plc - Goldshield Group Plc - Johnson Matthey Plc - Maelor Plc - Medical Solutions Plc - Ml Laboratories Plc - Pharmagene Plc - Phytopharm Plc - Protherics Plc - Provalis Plc - Pz Cussons Plc - Reckitt Benckiser Plc - Shiloh Plc - Shire Pharmaceuticals Group - Skye Pharma Plc - Smith & Nephew - SSI International Plc - Tepnel Life Sciences PLc - Theratase Plc - Vernalis Plc - Victory Corporation Plc - Xenova Group Plc


Content


1. Introduction


2. Executive Summary

- Salary and bonus levels
- Pharmaceutical companies’ remuneration packages versus other industries

3. Key Findings

- Director profile
- Remuneration
- Bonus and benefits
- Pensions

4. Report Methodology


5. Director Profile

- Demographics
- Responsibility level
- Education/professional qualifications

6. Director Remuneration

- Definitions
- Highest and lowest paid executives
- Remuneration by job type
- Total executive remuneration
- Basic salary
- Taxable benefits
- Bonuses
- Pensions
- Non-executive director pay

7. Other Emoluments

- Directors’ interests

8. Sample Companies Analysis


9. Sample Analysis: Industry Classification


10. Companies Included



List of Figures

Figure 2.1 Remuneration of UK pharmaceutical companies' lead executives Figure 2.2 Contribution of main components in the total earnings
Figure 2.3 Top 25 FTSE-100 companies by average total earnings of directors
Figure 2.4 Bottom 25 FTSE-100 companies by average total earnings of directors
Figure 4.1 Company information extracted for the report
Figure 5.1 Percentage of men vs. women on boards of pharmaceutical companies
Figure 5.2 Age profile of UK pharmaceutical company directors
Figure 5.3 Responsibility level of the board of UK’s pharmaceutical companies
Figure 5.4 Qualifications of board members of pharmaceutical companies
Figure 6.1 Breakdown of remuneration package of a typical director
Figure 6.2 Highest paying UK pharmaceutical companies for executive directors
Figure 6.3 Highest paying UK pharmaceutical companies for non-executive directors
Figure 6.4 Lowest paying UK pharmaceutical companies for executive directors
Figure 6.5 Lowest paying UK pharmaceutical companies for non-executive directors
Figure 6.6 Total pay package of board members relative to the CEO
Figure 6.7 Salary according to responsibility level
Figure 6.8 OGIVE for total remuneration of executive directors
Figure 6.9 Summary of total remuneration for UK pharmaceutical executives
Figure 6.10 Total remuneration ranges for executive directors
Figure 6.11 Highest paid executive directors by total remuneration
Figure 6.12 Summary of executive directors’ basic salary
Figure 6.13 Basic salary ranges for executive directors
Figure 6.14 Highest paid executive directors by basic salary
Figure 6.15 Summary of executive directors’ taxable benefits
Figure 6.16 Highest paid executive directors by benefits (as percentage of basic salary)
Figure 6.17 Summary of executive directors’ taxable benefits
Figure 6.18 Biggest bonus paid to executive directors (absolute figures)
Figure 6.19 Summary of executive directors’ taxable benefits
Figure 6.20 Highest paid executive directors by pension contribution (% of salary)
Figure 6.21 Summary of non-executive directors’ salary
Figure 6.22 Highest paid non-executive directors by total remuneration
Figure 7.1 Wealthiest directors on basis of market value of company shares
Figure 8.1 Details of UK pharmaceutical companies included in sample (£m)
Figure 9.1 Companies by core business
Figure 9.2 Sector distribution the companies surveyed on basis of turnover (£m)
Figure 9.3 Company staff costs versus key financial parameters
Figure 10.1 List of companies included in the report