AbbVie to Reimburse Executives for Inversion-Triggered Taxes

Discussion in 'Shire' started by Anonymous, Sep 2, 2014 at 12:35 PM.

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  1. Anonymous

    Anonymous Guest

    AbbVie Inc. agreed to reimburse top executives and board members for millions of dollars in taxes triggered by acquisitions the health-care companies are pursuing that would move their legal homes abroad.

    The agreements, disclosed in recent regulatory filings, cover a 15% tax imposed on stock and option awards to officials at companies pursuing so-called inversion deals. In such takeovers, the buyer re-domiciles to a lower-tax jurisdiction. The tax, imposed by Congress in 2004 to discourage such transactions, will be triggered by Medtronic's $43 billion proposed acquisition of Covidien PLC and by AbbVie's $54 billion agreed purchase of Shire PLC. Covidien and Shire are both based in Ireland.


    Medtronic will cover an expected $24.8 million tax bill for Chief Executive Omar Ishrak, according to a filing Wednesday. Finance chief Gary Ellis and other executives will split another $32.7 million, while 10 nonemployee board members will share about $5.5 million, according to the agreements, which were reported earlier by the Minneapolis Star-Tribune.

    AbbVie, meanwhile, said in an Aug. 21 filing that it will cover similar tax bills, of unknown size, for CEO Richard Gonzalez and other executives and directors.

    Such "gross-up" payments can be controversial as some corporate-governance watchers see them as a form of excessive executive and director pay. They also can be expensive for companies, in part because the payments are themselves subject to the same tax.

    Both companies said in their filings that the reimbursements put their executives in the same position as other shareholders, as they still would have to pay capital-gains taxes on any paper gains from stock they hold—another consequence of prior legislation aimed at curbing inversions.

    A spokesman for Medtronic said the reimbursements allow its executives and directors "to focus on what is in the best interests of the company, and not on their personal finances." AbbVie couldn't be reached for comment.

    http://online.wsj.com/articles/medtronic-abbvie-to-reimburse-executives-for-inversion-triggered-taxes-1409348492
     

  2. Anonymous

    Anonymous Guest

    AbbVie can afford millions of dollars to cover the taxes for senior execs on top of tens of the millions of dollars in retention bonuses for Flemming and his 30 friends. But somehow AbbVie can't afford to pay regular Shire employees the severance they deserve. Typical.
     
  3. Anonymous

    Anonymous Guest

    And top sales reps on the street have their walking papers. Shame on you Kathy K and Perry "Invest in sales force" fake ugly bastard!!!!! A company built on a Salesforce of successful non-pharmaceutical sales personal, has been taken over by Pharmaceutical self-promoting ASSES!!! Your day will come, buy a company for 54 billion with total sales of 3 billion. Shire is a one trick pony with Vyvanse, BED, and Adderall XR plus, yep that will make up the 51 billion, or did you falsify the numbers for self gain, wow you all make Martha Stewart look like Mother Teresa! Shire was a fine organization helping patients and employing great personal. Hope you feel good with the money you falsely made, and the careers you destroyed!!! Burn in HELL!!!
     
  4. Anonymous

    Anonymous Guest

    That there is some sour grapes
     
  5. Anonymous

    Anonymous Guest

    Have to admit it this poster is right on. Those B+L interlopers have been exposed but a little too late I'm afraid. Anything you do now will only benefit them as they try and prove that they made this sales force what it is with their phony numbers. F'em
     
  6. Anonymous

    Anonymous Guest

    How do we go about getting the message out that KK and PS are foul, so that it will be heard? They aren't going to be looking to Cafepharma! Ideas??? Write "letters to the editor" of pharma publications???
     
  7. Anonymous

    Anonymous Guest

    Post message threads outing them on the AbbVie boards so at the very least the word gets out there. You never know someone could be reading it. Forget about here at Shire. They've got it rigged it their favor from the top down.
     
  8. Anonymous

    Anonymous Guest

    Today is week one or day one of your severance:

    Look people - Your severance package starts today. KK and PS are going to reduce your income or get rid of you!! Bottom line. Act now!

    1. Any increase in your business makes them look good.
    2. If you work hard and earn a large bonus, you become a financial drag on the bottom line (sorry folks that's how they see it) look at the top performing high paid reps that are all the sudden quietly gone? Put in new hire start BTS were a senior rep would of made bank, insert new rep not eligible for 3rd qtr bonus, pay the new rep 1/2 or 2/3 senior rep, even with senior reps severance KK and PS think they improve the bottom line.
    3. So get your seven "hey nice to see you, here are your coupons or samples" sit in the parking lot and find a new job. START NOW not a quick process -
    4. When you get job offer call HR and say I would like to leave, Is there something in the employee guidebook that allows a severance for parting ways?
    5. So do just enough to get the "job done" and avoid "It's the best time to be at Shire Crap" they are only in it for them. PS is pimping KK to puppet his evil empire! Oh KK how did you get that starting position in Kanas on the travel volleyball team?
    6. Sorry folks, the holidays are close and it is when they will keep few and turn their backs on most, and it will have nothing to do with numbers or performance (unless you can outperform KK where it counts).
    7 God bless and take care of yourselves and your families!!!!
     
  9. Anonymous

    Anonymous Guest

    Great! What is going on now (I mean besides the whole takeover and we wont tell you anything)? Anything else we should know about? Sounds like they are up to something sooner than we thought?
     
  10. Anonymous

    Anonymous Guest

    What top reps are gone?
     
  11. Anonymous

    Anonymous Guest

    3% vacancy, and what "top reps" are gone?
     
  12. Anonymous

    Anonymous Guest

    KK how did you calculate 3% - Did you divide by a projected number of reps, did you add in Abbvie overlap or just make-up a number. Sorry to question math, our quotas are so right on the mark.

    Oh and believe me, KK checks café pharma - watch her video, little insecure.

    Oh sorry posting for careers on Shires website must of appeared to be more than observed by post.
     
  13. Anonymous

    Anonymous Guest

    Seriously - KK and PS have a pretty clear reputation and what we've seen only confirms it. Neither seem able to succeed on their own, and I regret not paying attention to the stuff on CP warning us about their "skills." They must be counting on FO cashing them out - hard to believe they have a future anywhere unless he brings them along.
     
  14. Anonymous

    Anonymous Guest

    They don't have a future if FO doesn't bring them. KK didn't even win over the interviewers here, but PS pulled a fast one and brought her on anyway.
     
  15. Anonymous

    Anonymous Guest

    I am so motivated by them I am surfing CP in the parking lot! AbbVie is sure buying some management talent!!!