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AFSCME Urges Shareholders to Vote against Executive Compensation at Pfizer (PFE) and Johnson & Johnson (JNJ)
Date:4/12/2011

G)

$13,115,228

16.13

-11.95

6.72Bristol-Myers Squibb (BMY)

$11,770,880

44.08

16.4

26.07Johnson & Johnson's Ranking2nd12th5th14th6. Crediting Weldon for getting JNJ out of predicaments he led it into - The Board stated that it "believes that Mr. Weldon generally met expectations during 2010, a year with many successes and very visible challenges." The Board also acknowledged that "the Company's long-standing reputation was challenged and revenue was impacted by a series of operational, quality and compliance issues, most notably at McNeil Consumer Healthcare." But despite these reputational challenges, the Board found "Mr. Weldon was instrumental in the Company's response to these issues, including the implementation of a comprehensive remediation plan at McNeil and a new operating model for supply chain, quality, and compliance spanning the enterprise."(14) The Board is crediting Weldon for leading the company out of trouble that happened under his watch. There is a disconnect between giving Weldon the credit for good news while assigning no blame for bad news.

What Others Are Saying1. Compensation disconnect with bad news - "After a year in which Johnson & Johnson's product quality control was deemed such a shambles that the U.S. government will oversee some plants, the board had praise for Chief Executive William Weldon and awarded him almost $29 million in overall compensation.

The once golden reputation of the diversified healthcare giant was severely tarnished in 2010 by seemingly endless recalls of high profile consumer products as well as recalls of medical devices and products from other units.

U.S. consumer product sales fell by more than 19 percent in 2010 as recalls cost the company $900 million in sales, and the company's 2011 forecast for earnings growth of only 1 to 3 percent fell shy of Wall Street projections.

J&J has lost about $18.5 billi
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SOURCE American Federation of State, County and Municipal Employees
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