No bonus for Chiron CEO
San Francisco Business Times - March 17, 2005
Chiron Corp. CEO Howard Pien will not get an annual bonus for 2004.
In a filing with the Securities and Exchange Commission on March 15, the Emeryville firm (NASDAQ: CHIR) said the compensation committee of its board of directors approved a zero bonus for Pien, and handed him a new salary of $850,000, up from the initial salary of $760,000 he signed up for in 2003.
The committee also approved a 2005 target bonus for Pien of 120 percent of his base salary -- up from the 100 percent target bonus he landed when he joined the company -- according to SEC filings. Pien could potentially earn a greater bonus if he substantially exceeds his targets.
Pien joined Chiron in April 2003 and his employment agreement stipulates a minimum annual base salary of $760,000 and a target bonus of 100 percent of his salary. In 2003, Pien received base pay of $552,461, a $650,000 signing bonus and a compensation bonus of $850,000.
Chiron has not released his 2004 salary, which is typically outlined in an April SEC filing ahead of its annual shareholders' meeting.
Pien's new salary became effective Feb. 28.
Chiron made headlines last year when regulators in the United Kingdom suspended the company's manufacturing license at its Liverpool facility, citing concerns over contamination of its Fluvirin flu vaccine. That move gutted the supply of flu vaccine to the United States by about half and locked Chiron out of the flu vaccine market for the year.
The SEC has started a formal investigation into potential violations of securities laws by Chiron, and has requested documents related to its vaccine and the manufacturing stoppage. Shareholders also have sued.
Chiron announced on March 3 that U.K. regulators had lifted the suspension of its license to manufacture the vaccine in Liverpool after further inspections and a remediation plan put forth by the company. The decision allows Chiron to re-enter the flu vaccine market in the upcoming 2005-2006 flu season. |
