I'd call a $137,000,000,000 drop in company value a massive loss.
A company reports a loss when its expenditures exceed its revenue. I don't know the details for the company during that time, but I think it was profitable for at least much of the period and for the period as a whole.
Which is not to say that declines in stock prices don't matter, but they can exist in the context of profits, even growing profits (if the growth doesn't meet expectations, or if expectations about future growth change), not just when there are massive losses.
However, McKinnell did not suffer for his reign of error at Pfizer.
Neither did unions, which makes this a bad example to use to argue that unions and/or union members take the hit while CEOs don't.
McKinnell still had quite a wad of cash to stuff in his pocket: $12 million in severance pay; a bonus of $2.15 million; and a hunk of stocks that had vested, worth $5.8 million. In addition, he also received a $78 million payout for deferred compensation, along with about $18.3 million in “performance-based shares.” And as if that wasn’t enough, McKinnell will be cashing an annual pension check of $6.65 million—for the rest of his life.
All part of his contract, so he should be paid that. |
