Gilead Executive Pay: Modest Raises for Outstanding Performance

(MoneyWatch)  Gilead CEO John C Martin got a negligible pay raise in 2008, despite the fact that his company largely met its performance goals. Revenue was up, net income was up, and the stock price held (it's still double the price it was in 2004).

Yet Martin's total compensation went from $10.8 million in 2007 to $10.9 million in 2008, according to a filing with the SEC. Yes, that's a raise of $100,000 but in the gilded world of pharmaceutical CEOs, it's virtually nothing.

His fellow executives also received tiny raises, and in one case, a pay decline.

Gilead routinely tops BNET's ranking of sales and marketing productivity, earning $7.37 in revenues for every dollar spent on SG&A.

The modest scale of Gilead executive compensation stands in stark contrast to those of his colleagues at larger companies, where a culture of pay-for-failure reigns, giving vast compensation increases for men who have tanked their stock, laid off their colleagues, and seen revenues and net income decline.

Here's a table of Gilead executive total compensation, which includes pay in the form of stock and options:

• Name, 2008 pay, 2007 pay
• CEO John Martin, $10.9 million, $10.8 million
• CFO Robin Washington, $1.1 million, N/A
• COO John Milligan, $5.1 million, $4.9 million
• R&D chief Norbert Bischofberger, $4.3 million, $4.6 million
• EVP Kevin Young, $4.3 million, $4.1 million
• General counsel Gregg Alton, $2.6 million, $2.5 million
• Former CFO Caroline Dorsa, $24,680, $402,482

The only wrinkle in Gilead's pay structure seems to be CFO compensation. Former CFO Caroline Dorsa received $402,000 in 2007, off a base salary of just $80,000. When she was replaced by Robin Washington (also female), the base salary jumped to $330,000 and the total pay to $1.1 million. Looks like Dorsa got ripped off!

• See previous BNET stories on pharma executive compensation:
• Gilead Deal Gives CV Therapeutics CEO $8.4 Million Payday Despite Lack of Profits
• Pfizer's Kindler Got $4.2 Million Pay Raise, Despite What Business Press Says
• Pfizer Execs' Golden Parachute Is Actually a Pay Cut
• Gilead Deal Gives CV Therapeutics CEO $8.4 Million Payday Despite Lack of Profits
• Genentech's Levinson May Have No Change-of-Control Agreement in Roche Deal
• Amgen CEO Sharer: Options? No Thanks. I'll Just Take the Cash.
• Schering CEO Hassan Has $59 Million Buyout Agreement in Merck Merger
• Merck Executive Pay: $36 million, Use of Private Jet, Cash Bonuses Despite Failures
• Eli Lilly Execs Receive $48 Million in Pay; Plus Chairman Taurel Adds $40 Million Nest Egg
• Novo Nordisk Executive Compensation: A Picture of Modesty (Except for the Car Expenses)
• How Pharma's CEO Pay Packages Measure Up