It took him five years, but Schering-Plough CEO Fred Hassan has finally lost money on his company's stock. Between 2003 and this year, Hassan bought $6.68 million of SGP common stock and made this vow:
This investment in Schering-Plough reflects my long-term confidence in the company, its products -- including ZETIA and VYTORIN -- and our late- stage pipeline.BNET readers will remember that when we last checked in, Hassan's SGP stock was still making a profit, based on the timing of his buys, even though the stock has plunged from its 2007 high of $33.14, and he was laying off thousands of his employees.
Since then, the market crash and the bank bailout have further driven down SGP stock, and Hassan has finally lost money on paper. The stock closed at $14.56 yesterday, well below the price of the stock when Hassan twice waded into the market (at roughly $15.42 and $18.26, respectively).
By my calculations, Hassan has turned his $6.68 million into about $6.01 million -- a loss of more than $600,000. Good job he's holding for the long term. Also, he has $30 million in cash and non-cash compensation from 2007 to fall back on ...