A company does something sleazy, and pays $465 million in settlement. But the company’s senior executives don’t get a salary hit.
“EpiPen Pact Unlikely to Affect Pay,” The Wall Street Journal, October 28, 2016 B2. Mylan execs won’t suffer because their compensation is determined based on adjusted earnings that exclude the cost of settlements, such as the one the company is paying to the US Gov following allegations of Medicaid overcharges for the EpiPen.
Too bad the returns to the shareholders can’t be computed the same way. What about the Board that agreed to this formula? Didn’t directors use to have a fiduciary duty?