Elan CEO Martin's Pay Cut by Half

(MoneyWatch)  Elan CEO Kelly Martin earned roughly half last year what he earned in 2007, news which should please angry investor Jack Schuler, who wants new management at the company.

According to RTE:

Kelly Martin earned $830,496 last year, compared to $1.9m the year before. The report states this is because he waived his 2007 cash bonus which would have been paid last year in exchange for share options.

Elan's executive director Shane Cooke's pay fell by 14.5% to $1.1m last year.

If you want the details, download this report.

The pay cuts raise the interesting possibility that if Schuler -- who believes Elan's management is wasteful and incompetent -- gets his way, he may make Martin a rich(er) man. Here's what happens if Martin is asked to leave the company:

... if Mr. Martin's employment is involuntarily terminated (other than for cause, death or disability) or Mr. Martin leaves for good reason, we will pay Mr. Martin a lump sum equal to two (three, in the event of a change in control) times his salary and target bonus and his 2005 options will vest...

Unemployment also comes with an unusual (and for one unlucky employee, uncomfortable) perk:

Mr. Martin will also be entitled to career transition assistance and the use of an office and the services of a full-time secretary for a reasonable period of time not to exceed two years (three years in the event of a change in control).

• Previous BNET coverage of Elan:
• Elan Silent on Corporate Jets as 230 Are Laid Off
• Elan Management Creates Self-Enrichment Plan as Pfizer-Wyeth Deal Threatens Bapineuzumab
• Elan Chairman: "We're Qualified Managers Because We're Irish"
• Elan Sees Problems on Alzheimer's Drug; Puts Itself Up for Sale
• Elan "Poison Pill" Deal With Biogen Prevents Rumored Pfizer Takeover
• Elan's Pennsylvania Lawyer Once Again Makes News

• See previous BNET stories on pharma executive compensation:
• Mylan Execs Get 41% Raise; CEO Takes Company Jet on Vacation for "Security" Reasons
• Valeant Executive Pay Doubles to $19.7 Million Despite Quadrupling of Company's Losses
• Shire CEO Compensation Report Successfully Conceals CEO Compensation
• BMS Execs Get Cash Not to Ride Private Jets; 61% Pay Raise to $59 Million
• Allergan CEO Pyott Received Pay Raise to $11.9 Million
• Abbott CEO White Takes a Pay Cut
• Gilead Executive Pay: Modest Raises for Outstanding Performance
• 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
• 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)
• As Layoffs Begin, Wyeth Execs Get $75 Million Severance Package
• How Pharma's CEO Pay Packages Measure Up