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.
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.
When will the time arrive when the management in corporate America will get paid for performance?
Does this board have no shame in granting this package.
In Japan the Yakuza blackmails corporations. It seems in US the boards blackmail the shareholders. Somehow and sometime this has to end.
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 stockholder, I feel so insignificant, that writing a letter to this institution seems futile - probably only winding up in the trash. We have government agencies that monitor news of wall street companies - I know they are watching the "goings-on" at J&J - had Weldon on the ropes one time, and let him go - that was incredible.
Manufacturing deficiencies, product quality issues, recalls, layoffs, lawsuits, reputation demise, toxic acquisitions, excessive payouts to leaders with cuts to employee compensation. Doesn't this warrant someone with clout stepping in with some serious requests for answers as to how this circus at corporate operates?
At times, it does feel like as individual shareholders are too insignificant to make a difference. Silence is not going to make things better.
Change has to start somewhere. Call IR, give them a earful, forward them my post, do something. Don't take it lying down.
Weldon should have been fired years ago for incompetence. This retirement package is rubbing salt into the wounds that have been inflicted on shareholders for the past decade.
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!
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.
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.
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.
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?
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'!!
Yes,$143 mil is a lot of money,however,these retirement packages are normally accumulated over the course of an entire career. Mr. Weldon has been with J&J since 1971,and the retirement package has been vesting for the past 41 years. The board most likely could not recind the package even if they wanted to.