Kham/Reuters
- Pfizer CEO Albert Bourla raked in more than three times his base salary when he sold about 60% of his stock on Monday, shortly after trumpeting the stellar performance of his company’s COVID-19 vaccine in a late-stage trial.
- The executive sold $5.6 million worth of shares due to “personal financial planning” and as part of a predetermined plan that he authorized in August, Pfizer told Reuters.
- Bourla’s proceeds equate to about 30% of his total compensation of $18.2 million last year.
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Pfizer CEO Albert Bourla sold shares worth more than triple his base salary on Monday, hours after proclaiming that excellent results from the pharmaceutical company’s COVID-19 vaccine in a late-stage trial made it a “great day for science and humanity.”
Bourla described the results in a press release as a “critical milestone” in the race to develop a vaccine, and a “significant step” towards ending the coronavirus pandemic. Pfizer’s stock price jumped as much as 15% on the news.
The Pfizer chief cashed out more than 60% of his stock the same day, raking in $5.6 million — about 30% of his total compensation in 2019. The sales were part of his “personal financial planning” and a predetermined 105b-1 plan that he authorized in August, meaning they were allowed under Securities and Exchange Commission rules, Pfizer told Reuters.
An analysis of Bourla’s pay shows his stock sales were significant in scale:
In total, Bourla received $18.2 million in compensation last year, according to Pfizer's latest proxy statement. That included a base salary of $1.6 million, a $3.6 million annual bonus paid this year, and an estimated $13 million in long-term stock awards granted in February of this year and tied to Pfizer's performance in the coming years.
The executive also chose to defer the payment of a stock award tied to his performance over the preceding three years. He had a total of $14 million in deferred compensation and funds in a company savings plan at the end of December.
Whatever his reasons for selling, Bourla's disposals this week were significant relative to both his total compensation and his deferred compensation last year.