Markets

Elan CEO Martin's Pay Cut by Half

By Jim Edwards

Updated on: April 2, 2009 / 6:22 AM EDT / 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).