According to WSJ, Weldon will be leaving with a retirement package valued in excess of 143 million dollars.
How can the company rationalize this outrageous compensation? During the 10 years that he was the CEO, his compensation was egregious enough. He has few peers when it comes to being paid handsomely for incompetence. His lavish send off begs the following questions
How did the STOCKHOLDERS fare in the last 10 years?
Shareholder equity did not grow. No stock price appreciation. A lost decade.
How did the COMPANY fare in the last 10 years?
Lots of product recalls. Many ethical lapses in product promotion and marketing practices resulting in lawsuits, fines, and settlements. Enormous loss of brand value. JNJ is no longer the most admired or trusted company, not even sure they can crack the top ten.
How did the CUSTOMERS fare in the last 10 years?
Poorly. No significant innovative products. Lost confidence in the quality of JNJ's products. Many have moved on to other brands, never to return.
And how did the EMPLOYEES fare in the last 10 years?
Lots of layoffs. Early retirement packages. Outsourcing like it is going out of style. Incessant layoffs while the executives make off like bandits. Very poor employee morale.
The Credo has been dead for a while. Time for a formal funeral.
Where is the outrage?
Fire the incompetent, clubby board. Rescind this outrageous package
Write to the company and let them know how you feel about your feelings as a shareholder.
I'm reasonably satisfied as a shareholder with the performance over the past 10 years. The share price over that time has increased by about 20%, and the dividend has trippled. As a value/income investor, that meets my standards. There have been quality control problems, but they have been faced squarely and dealt with. Such problems are not uncommon in mature companies of such size and complexity - Toyota's problems come to mind. Sales would argue that J&J's branded products are still doing well. Innovation has become more and more diffucult in the pharma area - big pharma in general is relying more and more on micro pharma to find targets and drugs to act on them. Layoffs and early retirement are the norm for this industry and others. Get used to it. I hope new management will continue to keep share values in line with inflation and keep increasing dividends. Voting my 5000 shares as I always have - FOR what they ask me to vote for and AGAINST what they ask me to vote against. I don't have the skills or background to manage a major pharma company, and nobody posting on this board does, either. You want to run a company? Start one.
Chicken, bought my shares 10 years ago, price was $66.23! Where do you get the stock price has grown by 20% over that time frame? Your name seems to indicate your intel...by all means just 'fall in line' with what the board tells you to do, don't read the newspaper, watch the stock price, or consider that the share price has NOT grown over the past 10 years. You want to continue your involvement with JNJ like this, fine...not for a large number of people who want to see 'real share price growth'!!
With all due resoect, if you are just going to always vote for whatever the BOD recommends and you think that is appropriate, why evne bother to vote? If you don't vote they just count your votes in the "For" total as an assumption anyway.
From your POV then, why even allow people to vote at all?
The head of J&J’s compensation committee is Charles Prince. The same Charles Prince, former chairman and CEO of Citigroup, who very nearly bankrupted that company. How do these bozos get such cushy gigs?
Yes, make sure you let the BOD know what you feel. Last year there is only 61% approval on company's executive compensation which had alarmed the BOD. We definitely can do better this year.
So vote what you feel is right for the company!
As I've stated for the past ten years, every component of the CREDO has been compromised under Weldon 's watch. I can't wait for the day when the word "Weldon" and J&J are separated.
HIs legacy- the worst CEO in the history of J&J yet he was compensated as one of the best. Hopefully Gorsky will make some needed changes to the BOD.
Where's the logic??
You trash the stock, but you rate it as a "hold"??
And what exactly is a good 10 year performance?? $32B to ~$65B revenue increase; 17% increase in employees, drug pipeline loaded and the envy of the industry, dividends from .70 to 2.25, one of only 4 or 5 companies to have a AAA rating- this list can go on.
You watch too much TV, and you are a perfect candidate to have SOMEONE ELSE manage your finances.
AND for now, enjoy cashing your dividend check while the tax is still 15%.
You just don't get it. There are various opinions on this board. People are on it because there is are financial and other interests in JNJ. The point being made here is this: Management over the past 10-12 years made major, major blunders, and shouldn't walk away with their pockets even fuller. It's simply wrong and destructive to permit this type of behavior to continue within our financial and social systems. Making the company "bigger" did NOT make it "better" by any stretch of the imagination. The strategy of "growth through acquisition" with a complete disregard for quality and integrity has essentially backfired for everyone but management. The reason I asked about their "contracts" is because I'm certain they are rewared handsomely for "growing revenues", and certainly that has happened under Weldon. The problem is he made JNJ the "old General Motors". A huge organization that produces shoddy product. I want this company to get back to quality and integrity and to grow at its true potential. I also don't want this Management team to be rewarded for extremely poor performance. Simple as that.
What would be adequate compensation for running a company of 119,000 employees worldwide, diversified from band-aids to treatments for cancer, operating under the government health care regulations of the US plus all of the countries in Europe (NICE in Great Britain), who is trying to adapt to the Affordable Care ACT (in the largest market USA) where the rules are still being written..... You get the picture..... EASY job isn't it. he just gets in a limo and rides to New Brunswick every day.... You have no clue...
As a long time shareholder I'm extremely dissappointed in Mr Weldon's performance and the board should change the current compensation program if this is the outcome for the shareholders. I'm all for pay for performance. We have had virtually no stock appreciation under both this board and the current management team for a TEN year period,truly subpar outcome / performance. Time to change all the Board of Directors positions and get this great company back on track. Buffett might be right to reduce share position till management get this company fixed.......Over 140 million in CEO compesation and a salary raise in 2011 for recalls, lawsuits and lost marketshare!!!! Board must be very weak group of individuals but have the authority to pay themselves and CEO very well. Start firing people at the top instead of doing layoffs and cost cutting initiatives to make the financial numbers for Wall Street to earn their bonuses and stock options!!
As a 10 year shareholder with just over 1000 shares, I am very disappointed with Weldon's retirement package.
The dismal stock perfomance, the numerous recalls, and lackluster drug development spells failure for this man.
He should have received nothing. He already was being paid quite handsomely.
I will be voting "no" for all BOD elections.
In this country today, there is no more outrage as the rich continue to accumulate more and more wealth as they lay off, ruin businesses, off shore, etc. People are so stupid they think they are next in line for this largesse.
To try to provide some balance to the knee-jerk, lynch-mob, non-thinking posters in this string. To point out that investors are responsible for their decisions. To fill my lonely hours and amuse myself.
On what basis do you assume that age and wisdom are in any way related? Don't you know that half the people in the world are below average intelligence, regardless of age? But apart from that, I must say I am thrilled by your self-congratulatory appointment to the enlightened people. I look forward to watching you save the world. Hope you won't stop with just extirpating the tyrants, because with your talents and enlightened views, you can cure cancer, reverse global warming, and prevent world hunger while you're at it. Really, dude, "to leave the cancerous mole in place and keep on golfing" is one of the funniest quotes I've ever found on a message board. Contratulations on a great spoof posting.
Citi BOD being sued for excessive compensation for mediocre performance.
Last year, Weldon got a bonus of $28 million. For what? There was no capital appreciation for shareholders and JNJ's reputation continued to be shredded. JNJ BOD pay practices are indefensible. It is about time shareholders standup and get counted. They own this company and should have a say on what level of compensation is appropriate for really poor management.