Johnson & Johnson Shareholders Demand CEO Pays Out
A Johnson & Johnson CEO paid more than any other pharmaceutical company CEO may be forced to pay back a large amount of that compensation in a recent shareholder lawsuit, according to news reports.
The CEO in question has been paid more than $150 million since 2006. Shareholders argue that this is “lavish and excessive” because it’s more than the following four drug company CEOs combined, and Johnson & Johnson’s stock, operating cash flow, and revenues have stayed flat while its R&D declined and liabilities increased. These liabilities include 26 product recalls, most notably the recall of 93,000 artifical hips after they were implanted in consumers.
The plaintiffs have found fault with Johnson & Johnson’s compensation policy, which they have stated is not based just on results “but also for the manner in which they achieve them.” They argue that the board has continued to unfairly compensate the CEO even though he repeatedly violated the Johnson & Johnson credo, which the compensation policy is based upon.
Johnson & Johnson has not yet filed a response.
As a Los Angeles personal injury lawyer, consumer safety and holding companies accountable for their products is of the utmost importance to me. If you or a loved one has been injured because of hazardous medical product I suggest you seek medical attention right away. It can also be just as important to contact a product defect lawyer as soon as possible because you may be entitled to monetary compensation as a result of getting injured because of a defective or recalled product. You should also remember that the longer you take to contact someone about your case the more chance you have to lose evidence.