Readjust C-Suite and Board Compensation

The current compensation for the C-Suite and Board is way out of bounds in comparison to other public companies of a similar Market Cap.

The Board should be fair to its shareholders and adjust compensation to reasonable levels.

The lack of shareholder value creation in 2019, unimpressive Inbrija's sales, and lack of an immediate Phase 3 ready pipeline; cannot imagine a single ACOR investor who is cozy with multi-million packages for C-Suite.

But, who knows, perhaps some investors care to post opposite opinions and convince us otherwise.

 

This suggestion comes up every time a company has a bad quarter or two and shareholders 'blame' the leadership. Sometimes leadership is the culprit. Sometimes rank&file is the culprit. Sometimes external events (depression, war, natural disasters etc) are the culprit. At this juncture we cannot unequivocally state that the leadership is the culprit. Therefore we can not justify a salary reduction. They work literally 24/7 for the benefit of the employees and investors. If we were to cut their pay they might back off on their efforts and hurt shareholder value.

Please, as a investor, do not create another 'them vs us' scenario. Acorda must recover thru hard sales efforts for Inbrija. This is a so called 'ballbuster' product from what I have read.

 

This is not just "a bad quarter or two".

Facts:

On July 2, 2018 ACOR closed at 29.90

On June 28, 2019 (almost a year later) ACOR closed at 7.67

C-Suite and BoD have among their priority creating share value.
So far, they have failed miserably.

Perhaps is time for the Board to consider changing leadership.
Board also needs to consider new members that will hold the C-Suite accountable.

Incidentally, if you are a company employee, one should be utterly surprised at your statement: "This is a so called 'ballbuster' product from what I have read. " Sounds like the C-Suite is not doing its job of having everyone in the company live and sweat their only product. Another reason why they have become complacent in their positions. (and if you are an investor, then a poorly informed one; which diminishes the value of your opinion)

 

Speaking as an investor also with ties to employees who think highly of the company, it's chairman, and its prospects! Changing Board members and/or lowering compensation during this critical time would be very disruptive ! Let the Leadership lead !

 

The posters are making two inter-related points:

1. Compensation is exorbitant.
2. Leadership has totally failed to deliver share value

Thus, the questions on the the table:

Isn't it fair to lower their compensation?

Or

Isn't it time to change Leadership and bring a new Team with a successful track record to rescue ACOR?

 

Habib, I love the way you try to pass off a five year loss of value of over 70% as one or two bad quarters. That’s like CA saying we had a slight budget issue or Chicago claiming they had a few firearm incidents.

The valuation loss aside, leadership has failed at protecting IP, moving products through clinical trials, rejected and delayed filings with the FDA at a time when they could ill afford it, a late and weak launch of your me too LD.

Keep blaming the interns, the rank and file, the competition or whoever, however it is the overly compensated leadership at ACOR who hires, gives priorities and should be reviewing work product. Either way you spin it, the buck stops with them.

 

Outrageous !!! How dare you !!! Distracting us with your snake oil lies in the middle of the greatest launch in recent history. Acordians are proud to be led by the finest C Suite in the biopharmaceutical industry. At Merck they talk about Ken Fraiser stepping down because he is trying to join our Board. What do you think Bret Saunders is doing after Allergan sells ? Advising Acorda !! Thank God for Ron and our leadership team - we are lucky to have the best in the business navigating our ship

 

THANK YOU. VERY PROFOUND. You said it well. We have a Mensa-level, Nobel worthy CEO. Many pharma would love to have him. We have a powerful C-suite which is working diligently to improve our bottom line and shareholder value. We had had Six Sigma reviews and came out great. We have incoming interns and newbies eager to help out.

Life is good at Acorda. Lets not quibble over some mere scheckles that our Leadership takes home !

 

Mere schekels?

The CEO compensation is over 3M. Would not be an issue if ACOR will currently be above 50.

The CMO compensation is about 1.5M. Not an issue, if ACOR had a pipeline.

The Head of Commercial is being compensated about 1.5M. Not an issue, if Inbrija had spectacular numbers.

And the above compensation is in US Dollars; not in schekels. We wish it was schekels (current exchange is of 1 Israeli schekel for 25 US Cents)

The respectable move for the C-Suite and Board is to readjust downwardly their compensations and take NO Bonus in 2019 if the ACOR valuation remains below 20.

 

If you truly had the finest C Suite in the industry:
- you wouldn’t need to solicit “advisors” and pay them millions. That what you pay your leadership for.
- you would not have lost IP on legacy products
- stock would be > $60 share
- you would not have to depend on “one” product in your portfolio to drive success
- and you would’ve have to resort to Hail Mary tactics on an industry to poorly attempt a rally.... it is really a sign of weakness.

Psss. Hardly the greatest launch in history. Delusional $&@?

 

If you truly had the finest C Suite in the industry:
- you wouldn’t need to solicit “advisors” and pay them millions. That what you pay your leadership for.
- stock would be > $60 share
- you would not have to depend on “one” product in your portfolio to drive success
- and you would not have to resort to pumping this pig... it’s a sign of weakness

 

The dialog has sure gone downhill. Fact: CEO of Pfizer comp is $49 mil plus incentives. So what is 3mil? Mere chump change. Agree that maybe in future the comp be more closely tied to ACOR valuation. Same for rank&file. If they go after CEO then they should also be tied to ACOR valuation!!

Let's be fair.

 

LET'S USE YOUR EXAMPLE: PFIZER.

PFE Market Cap is 245 Billions
Their CEO compensation of 49 Millions represents 0.02 % of the Market Cap.

Applying the 0.02% to ACOR current Market Cap of 361 Millions, and Dr Cohen's Compensation Package should be no more than $ 75,000.

Obviously those are extreme numbers, but the point comes across very clearly: ACOR C-SUITE and Board have not delivered to us, shareholders, on creating value for the company & they are being overly compensated.

If the ACOR shares were above 60, we would not be having this discussion.
Unfortunately for ALL of us, ACOR is trading in the 7's. Sad. Very Sad.

 

I am frankly embarasse d. Your analysis indicates that CEO is indeed grossly overpaid at 3mil. Thank you for pointing out the facts. As a investor in ACOR I had zero knowledge of CEO comp.being so far out of line.

I.now may dump my 5000 shares and invest in other pharmaceuticals company(s).

 

Habib, any official corporate statement? Or just attempting to pivot away from the issue and hope that investors forget about the excessive executive and Board compensation at ACOR?

 

We must focus on the strengths of our Leadership Team. Salary is a very minor side issue. Stop discourse on compensation. Focus on Inbrija!!

 

very misleading. You cannot simply scale from PFE. We can cite other examples in pharmaceuticals where our Leader would be underpaid!!! So this analysis is flawed!!!I


Wall Street has never considered our C suite overpaid!!!!

 

The OP hates Leadership and this entire thread should be removed !

 

Habib, Wall Street does in fact think LRon is overpaid. Not simply because he makes 35% more than CEOs in his peer group, but because of performance.

You know that elusive concept that you can’t seem to grasp?

In case you have forgotten,

EPS Down 36%/year
Earnings down 29%
3 year loss of 69%

If that isn’t enough for the old resume, let’s add

Failed IP protection
Failed pipeline products
CRL and delayed launch on a me too drug that won’t replace revenue.

I realize you are paid to post in defense of this disaster of a C suite team, but could you at least put a little effort into it so it’s not so blatantly disproved?