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Saturday, September 21, 2013

The Pharmaceutical Big Ten CEO’s Plus Other Health Cost Inflators

We argue and threaten and talk about Obamacare till the cows come home. Most don’t like it, most don’t understand it, most likely support most of the parts of it but not the whole. Defunding it is now a ploy that is being gambled as a political ploy that may bring us all down.

I thought I’d just put my two cents in on just a little part of the problem illustrating the enormous costs of medical coverage today by giving you the salaries of the top 10 CEO of some pharmaceutical companies.

William Weldon is the CEO of Johnson and Johnson who compensation page is 26.7 million. They have many manufacturing issues and lots of problems, which lead many to question if he was being over paid. So, they gave in and 55% increase in his bonus.

Ian Read is the CEO of Pfizer; his package is $25 million a year. He is deemed a good CEO trimming the budget by a billion; %1.5 million from R&D and dropping 4,200 employees.

Miles White of Abbott Laboratories gets $24 million a year. They kicked off the year by cutting 700 jobs in North America.

Robert Coury of Myland gets $21.3 million a year. It broadening its base with prescription drugs for India.

Keven Shaer of Amgen makes $18.9 million. He took a pay cut and is set to retire after 20 years. They did well economically until recently. Be sure he will get a golden parachute.

John Lechleiter of Eli Lilly gets $16.4 million a year. They dropped his salary a wee bit as stock prices went down; this was offset by a $2.8 mill increase in his pension.

Jospeh Jimenez of Novartis makes $15.7 million. They are focusing on R&D hoping for a new cash cow while cutting thousands of employees.

John Martin of Gilead gets $15.6 million. They have had success in HIV treatments with 20% increases in these drugs which cost as much as $20,000 per year.

Laberto Andreotti of Britol-Myer Sqibb pulls down $14.9 million. He got a big raise as their stock prices rose.

Robert Parkinson  of Baxter get $14.1 million after a pay cut in 2010 but all seems well for him now.

In the industry there is a wide range of pay but entry levels are about $50,000 to $80,000 and things rise from there.

Now from here we can go to healthy insurance CEO salaries where the median last year was $11 million. Here are their top ten according to Forbes:
Rank
Name
Company
1-Year Pay ($mil)
5 Year Pay ($mil)
Shares Owned ($mil)
Age
Efficiency
1
UnitedHealth Group
101.965
120.472
111.4
58
-
2
Qwest Communications
65.80
75.003
36.3
64
-
3
Walt Disney
53.32
147.08
43.4
60
-
4
Express Scripts
51.52
100.21
79.5
56
-
5
Coach
49.45
137.87
133.9
65
86
6
Polo Ralph Lauren
43.00
155.25
3,417.8
71
74
7
Gilead Sciences
42.72
204.24
76.8
59
72
8
Anadarko Petroleum
38.94
97.38
24.6
57
93
9
Cisco Systems
37.90
170.34
58.0
61
190
10
Verizon Commun
36.75
130.19
76.5
64
163
- See more at: http://www.forbes.com/lists/2011/12/ceo-compensation-11_rank.html#sthash.3n5YzbUf.dpuf

That $11 million per CEO is significant and some say as much as half our money spent on health care is wasted. Plenty of places to point fingers.

Health care costs continue to rise whether Obamacare comes  or not. We spent about $2.6 trillion in 2010. Hospital services and physicians make up about 51% of that. Prescription another 10%. $407 billion was the net cost of administration of private health insurance, public health activity, research, buildings and equipment. And Technology is a biggy.


If Obama had not decided to play ball with the powers that be in medical care in this country we likely could have saved billions, but we wouldn’t want to do that would we? We don’t believe in single payers systems, let’s just make the fat cats fatter.
CEO with Health Care Worker?

  

  

  

   

   

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