Merck CEO Clark Eyes Retirement, and a $23M Golden Handshake

(MoneyWatch)  With the Schering-Plough merger done, Merck (MRK) CEO Richard Clark is already mulling who will succeed him in the bosses' chair. (Some believe Schering's Fred Hassan will be "tanned, rested and ready" at that point.)

But, as Internet Drug News asks, how much will Clark walk away with when he retires? A look at Merck's 2009 proxy statement gives some estimates. It's more than $23 million in cash and benefits.

Clark received $19.9 million in total 2008 compensation, including $7.7 million in retirement benefits, and $10,350 in savings plan company matches (don't forget $30,867 on "aircraft"). He also received hundreds of thousands of stocks and options, whose value changes over time. About $1 million of those investments was realized in 2008 alone.

The statement says Clark is credited with 35 years of service, which gives him $23.3 million in accumulated pension benefits. His deferred compensation is $7.7 million.

He is also eligible for 41 weeks of base pay, which would be worth about $1.4 million. However, the statement says that "Mr. Clark is not eligible for benefits under the Separation Plan as a result of his individual agreement ..." That agreement gives him two years' salary and bonus, which would have been worth $9 million in 2008, the statement says. On top of that, he gets three years' of healthcare benefits.

That's all under the current plan, in which Merck does not undergo a change of control. Of course, Merck technically has undergone a change of control because this is a reverse merger in which Schering is engulfing Merck and changing its name to "Merck." If that scenario plays out, Clark would get $24.8 million in payments.