Icos CEO in line to receive millions from takeover
By Luke Timmerman
Seattle Times business reporter
Icos Chairman and Chief Executive Paul Clark stands to receive millions of dollars from the sale of the Bothell-based company to Eli Lilly, according to filings with the Securities and Exchange Commission.
Despite Icos' languishing stock price during the last three years, Clark was paid at the 75th percentile of industry executives, according to the company's most recent proxy statement.
In 2005, he received $4.5 million in salary, bonus, perks and awards of restricted stock.
Clark's salary and bonus accounted for $1.7 million of the package.
Under Icos' change in control plan, Clark is eligible for a cash severance payment equal to three times his annual base salary and bonus.
Clark, 59, a former pharmaceutical executive at Abbott Laboratories with an MBA, was hired in June 1999 as CEO, replacing Icos co-founder George Rathmann.
Since then, Clark has accumulated about 3 million shares and options, a 4.5 percent stake in the company.
Many of the options were awarded at prices higher than Lilly's $32-per-share offer, so the total value is not known.
But if Icos shares had appreciated at a 10 percent rate over a 10-year period from the award dates, they could have been worth up to $165 million, according to SEC filings.
Clark said the exact severance-payment figures will be disclosed soon in the company's regulatory filings.
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