Sick and Tired
With governance specialists Glass, Lewis & Co., we propose Maytag’s Ralph Hake as this month’s candidate for spring cleaning.
CEO: David Mott
Tenure: 5 years*
Total Shareholder Return: -59.6%
Peer Index Return: 17.4%
S&P 500 Index Return: -18.2%
Total CEO Pay: $37.3 million
Drugmaker MedImmune’s stock could put anyone in sick bay. Presiding over this queasy performance has been CEO David Mott, who missed an opportunity to exploit a rival flu-vaccine maker’s production woes. Too-high pricing dampened sales, and overaggressive marketing got a slap from the FDA. In June, MedImmune settled two patent lawsuits relating to its biggest drug (Synagis), agreeing to pay royalties going forward. For this, Mott has been rewarded with 3.65 million new options over the past five years. Glass, Lewis handed MedImmune an F in pay for performance. We prescribe our anti-CEO vaccine.
*Mott became CEO in October 2000.
**Data from Glass, lewis & Co. and FactSet Research Systems for five years ending July 8, 2005.FCS