Markets

Allergan CEO Gets $15.7 Million Bonus if He Says Yes to GSK

By Jim Edwards

Updated on: March 26, 2009 / 12:09 PM EDT / MoneyWatch

Allergan CEO David Pyott could get a $15.7 million change-of-control bonus if he says yes to GlaxoSmithKline's alleged interest in buying his company. The potential windfall is detailed in Allergan's proxy statement filed with the SEC. Pyott gets $2.3 million if the company has a change in control (i.e. GSK buys all its shares). But he gets $15.7 million if his job is terminated after a change in control. (The proxy covers 2008; the deal in 2009 may have changed, but this is the most recent information available.)

The bonus includes vesting of stock and options, continued benefits, and cash.

If the top five execs left the company post-acquisition, they could walk away with a total of $37 million in extra compensation between them. Here's the breakdown of awards for change in control followed by termination:

Name, change of control followed by termination pay
CEO David Pyott, $15,742,387
CFO Jeffrey Edwards, $4,057,483
President F. Michael Ball, $5,693,451
General Counsel Douglas Ingram, $5,827,388
EVP/R&D Scott Whitcup, $5,617,839
Source: SEC.

As you can see by the sudden and sustained rise in Allergan's stock price (pictured), the market still believes something is going on between these two sets of companies ... Stay tuned.

See BNET's previous coverage:
The GlaxoSmithKline-Allergan Deal Worst-Case Scenario
Allergan CEO Pyott Received Pay Raise to $11.9 Million