Pfizer CEO Salary – President Income and Earnings

Curious about the salary of Pfizer’s CEO? In this article, we’ll delve into the compensation of Albert Bourla, the CEO of Pfizer, one of the world’s leading pharmaceutical companies.

According to the proxy statements filed for the 2022 fiscal year, Albert Bourla’s total compensation was $30,543,706. This includes a salary of $1,737,500, a bonus of $7,650,000, stock options worth $9,526,444, stock awards of $9,296,191, and other types of compensation totaling $2,333,571.

Let’s explore the breakdown of his compensation and compare it to other CEOs in the industry to gain a better understanding of CEO salaries and compensation practices.

Key Takeaways:

Albert Bourla, the CEO of Pfizer, received $30,543,706 in total compensation for the 2022 fiscal year.
This includes a salary of $1,737,500, a bonus of $7,650,000, stock options worth $9,526,444, stock awards of $9,296,191, and other types of compensation totaling $2,333,571.
The breakdown of his compensation reveals the various components that contribute to his total earnings.
Comparing Bourla’s compensation to other CEOs in the industry provides valuable insights into the CEO pay landscape.
Proxy statements and SEC filings are valuable sources of information for conducting a comprehensive analysis of CEO compensation.

Breakdown of Compensation

A breakdown of Albert Bourla’s total compensation at Pfizer provides insight into the various components contributing to his earnings.

Salary: Albert Bourla’s base salary amounts to $1,737,500.
Bonus: He receives a bonus of $7,650,000 as part of his compensation package.
Stock Options: The value of stock options granted to Bourla totals $9,526,444.
Stock Awards: Bourla has been awarded stock worth $9,296,191.
Other Compensation: Additional forms of compensation contribute $2,333,571 to his overall earnings.

This breakdown highlights the diverse elements that make up Albert Bourla’s total compensation. Each component plays a significant role in determining his overall pay as Pfizer’s CEO.

Bourla’s Compensation Details from SEC Filings

Detailed information regarding Albert Bourla’s compensation can be accessed by referring to PFIZER INC’s Def 14a documents and proxy statements. These public filings are submitted annually to the Securities and Exchange Commission (SEC) and offer a comprehensive overview of executive compensation practices, including salary, bonuses, stock options, stock awards, and other forms of compensation. Examining these filings provides a deeper understanding of how executive pay is structured at Pfizer.

The image above depicts the breakdown of compensation for Pfizer’s CEO.

Comparison to Other Industry CEOs

When it comes to CEO compensation, Albert Bourla, the CEO of Pfizer, has consistently stood out among his peers. Over the past five years, Bourla’s average yearly bonus has amounted to an impressive $17.4 million. While this positions him at the top of Big Pharma’s extra payouts, he ranks 24th among the CEOs of the 50 companies with the highest market capitalization.

To put Bourla’s compensation in perspective, let’s take a look at the highest average five-year bonus in a different industry. Tesla CEO Elon Musk takes the lead with a staggering $456.8 million. While Bourla’s bonus may not reach such extraordinary levels, it is important to consider the specific context of the pharmaceutical industry.

Industry
CEO
Highest Average Five-Year Bonus

Pharmaceutical
Albert Bourla (Pfizer)
$17.4 million

Automotive
Elon Musk (Tesla)
$456.8 million

As can be seen from the comparison above, CEO compensation can vary significantly across industries. While Bourla’s bonus may be more modest in comparison, it still reflects the industry’s norms and benchmarks. It is important to consider such factors when evaluating a CEO’s pay in the context of their industry and market conditions.

Therefore, the comparison of Albert Bourla’s compensation to that of other industry CEOs underscores his position as a highly regarded executive within the pharmaceutical sector.

Bonuses in the Pharma Industry

Bonuses in the pharmaceutical industry, including those received by CEOs, tend to be more modest compared to other industries. Alongside Albert Bourla, other notable CEOs in the pharma sector with average bonuses over five years include Richard Gonzalez of AbbVie ($17.3 million), David Ricks of Eli Lilly ($16.5 million), Joaquin Duato of Johnson & Johnson ($15.7 million), and Robert Davis of Merck & Co. ($7.9 million).

CEO
Company
Average Bonus (5 years)

Albert Bourla
Pfizer
$-

Richard Gonzalez
AbbVie
$17.3 million

David Ricks
Eli Lilly
$16.5 million

Joaquin Duato
Johnson & Johnson
$15.7 million

Robert Davis
Merck & Co.
$7.9 million

“Bonuses in the pharmaceutical industry tend to be more modest compared to other industries.” – Industry Expert

Despite being among the top-paid CEOs in the pharmaceutical sector, Albert Bourla’s average bonuses over the past five years have not been disclosed publicly. However, his counterparts at AbbVie, Eli Lilly, Johnson & Johnson, and Merck & Co. have received substantial bonuses, ranging from $7.9 million to $17.3 million.

The Importance of Performance Metrics

Pharmaceutical companies typically utilize various performance metrics to determine executive bonuses.
The metrics can include revenue growth, profitability, successful product launches, research and development milestones, and other key performance indicators.
Bonuses are often tied to achieving specific objectives and driving overall company success.

It’s important to note that executive compensation structures can vary across different companies within the pharmaceutical industry. While bonus amounts can be significant, they are generally in line with industry benchmarks and reflect the performance of the company and its leadership.

Continuing research and development endeavors, groundbreaking discoveries, and successful drug launches contribute to the financial success of pharmaceutical companies and consequently impact CEO bonuses.

Total Compensation and Payday

In 2022, Albert Bourla’s total compensation amounted to $33 million, making him the highest-paid CEO in Big Pharma. However, it’s worth noting that extraordinary circumstances can lead to higher pay for CEOs of smaller companies. For example, the rotating cast of three CEOs at Seagen pulled in significant amounts: David Epstein ($57.5 million), Roger Dansey ($36.4 million), and Clay Siegall ($32.8 million) before Pfizer acquired the company for $43 billion.

CEO
Company
Total Compensation

Albert Bourla
Pfizer
$33 million

David Epstein
Seagen
$57.5 million

Roger Dansey
Seagen
$36.4 million

Clay Siegall
Seagen
$32.8 million

Stock Options and Other Factors

While bonuses and salaries play a significant role in CEO compensation, stock options can have a substantial impact on their total earnings. CEOs like Stéphane Bancel of Moderna and Leonard Schleifer of Regeneron have experienced significant financial gains through stock options. Stéphane Bancel earned approximately $393 million and Leonard Schleifer received around $446 million from stock options.

Stock options are a form of compensation that allows CEOs to purchase company shares at a predetermined price within a specific time frame. The value of these options depends on several factors, including the timing of the stock purchase and the performance of the company’s stock in the market. When the stock price rises, CEOs can exercise their options and sell the shares at a higher price, resulting in substantial financial gains.

This type of compensation can vary widely based on different factors such as the company’s performance, stock market conditions, and the CEO’s decision to exercise their options. It’s important to consider stock options along with other elements of a CEO’s compensation package to gain a comprehensive understanding of their total earnings.

Having a clear understanding of the various components of CEO compensation, including bonuses, salaries, and stock options, is essential for analyzing their overall earnings.

CEO Compensation Ratio

The ratio of CEO compensation to the pay of a median employee is a topic of interest in analyzing executive pay packages. According to a report from BioSpace, the average CEO-to-median employee ratio in the life sciences industry is over 200. In 2022, Albert Bourla’s total compensation of $33 million was 437 times the median employee’s pay of $75,536.

CEO Compensation Ratio
2022

CEO Compensation (Albert Bourla)
$33,000,000

Median Employee Pay
$75,536

Ratio
437:1

Proxy Statements and SEC Filings

To find detailed information about CEO compensation at Pfizer, investors and analysts can refer to the company’s proxy statements and SEC filings. These documents provide essential data on executive pay practices, including salaries, bonuses, stock options, and other compensation components.

Proxy statements, known as Form DEF 14A, are filed with the Securities and Exchange Commission (SEC) within 120 days after the fiscal year ends. These statements are sent to shareholders in advance of the annual shareholders meeting and disclose information about issues to be voted on, such as electing directors and ratifying auditors.

The proxy statements also provide specific details about executive compensation. Investors and analysts can review the salaries, bonuses, stock options, and other compensation elements disclosed in these documents to gain a comprehensive understanding of CEO pay practices at Pfizer.

Proxy statements, along with other SEC filings, can be found on the SEC’s official website (www.sec.gov) or through the company’s own website in the investor relations section.

These filings are publicly available, allowing stakeholders to access and analyze the detailed information regarding CEO compensation at Pfizer. By reviewing the proxy statements and SEC filings, investors and analysts can conduct a thorough analysis of CEO salary and compensation at the company.

Note: The image illustrates the importance of accessing proxy statements and SEC filings to gain detailed information on CEO compensation at Pfizer.

Understanding Proxy Statements

Proxy statements are essential documents that publicly traded U.S. companies must file with the Securities and Exchange Commission (SEC). These statements play a crucial role in providing shareholders with important information before the annual shareholders meeting, including details about the issues to be voted on, such as electing directors and ratifying auditors. Additionally, proxy statements disclose specific details regarding executive pay practices, including bonuses, stock options, and other forms of compensation.

Shareholders and other interested parties can access the complete proxy statement from either the SEC’s official website or the company’s own website. The proxy statement offers a comprehensive overview of a company’s executive compensation structure and serves as a valuable resource for analyzing CEO salaries and pay packages.

Importance of Detailed Compensation Analysis

When it comes to understanding the value and appropriateness of CEO pay information, a thorough and detailed compensation analysis is crucial. By delving into the proxy statement, analysts and stakeholders can gain a comprehensive understanding of the structure of CEO compensation at Pfizer and evaluate how it aligns with performance and industry benchmarks.

Proxy statements provide a wealth of information on executive pay practices, including salaries, bonuses, stock options, and other compensation components. By carefully reviewing these statements, analysts can identify the various elements that contribute to a CEO’s total compensation package.

Furthermore, a detailed compensation analysis allows stakeholders to assess the effectiveness of a CEO’s pay in driving company performance. It provides insights into how incentives are structured and whether they are designed to promote long-term shareholder value.

Not only does a comprehensive compensation analysis enable a deeper understanding of executive pay practices, but it also promotes transparency and accountability within organizations. By scrutinizing compensation details, stakeholders can ensure that companies are rewarding executives appropriately and fairly.

Overall, conducting a detailed compensation analysis is essential for stakeholders to make informed judgments about the fairness and alignment of CEO pay. It enables a comprehensive view of the factors that contribute to a CEO’s compensation and facilitates meaningful discussions about executive remuneration.

Benefits of Detailed Compensation Analysis:

1. Enhanced understanding of CEO pay practices

2. Evaluation of compensation alignment with performance and industry benchmarks

3. Identification of various compensation components, such as salaries, bonuses, and stock options

4. Assessment of the effectiveness of incentives in driving company performance

5. Promotion of transparency and accountability within organizations

Conclusion

In conclusion, Pfizer CEO Albert Bourla’s total compensation for the 2022 fiscal year amounted to $30,543,706. This comprehensive package includes a salary, bonus, stock options, stock awards, and other forms of compensation. Bourla’s compensation ranks among the highest in the pharmaceutical industry, highlighting his significant contribution to the company’s success.

However, it is essential to consider the broader context of CEO pay practices. Factors such as stock options and the CEO-to-median employee pay ratio play a crucial role in evaluating executive compensation. Proxy statements and SEC filings provide detailed information that enables stakeholders to conduct a comprehensive analysis of executive remuneration.

By reviewing these documents, investors and analysts can gain insights into the structure and alignment of CEO pay with performance and industry benchmarks. It enables a better understanding of the value and appropriateness of the compensation package received by Pfizer’s CEO, Albert Bourla.

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