Alex Philippidis Senior News Editor Genetic Engineering & Biotechnology News

Leaders of Lab Instrumentation Continue to Gain in Total Compensation

While CEOs of biopharma tools and technologies firms may not command the higher salaries enjoyed by their counterparts who run drug development companies, tools CEOs saw mostly gains in their total compensation last year. Those gains reflected increases in the value of stock awards and option awards, as optimism about biotech by investors and markets drove up share values—a confidence that has been shaken in recent weeks.

In addition to Wall Street, a factor in rising CEO pay is continued consolidation within the biopharma tools segment. Last year saw one blockbuster deal consummated as Thermo Fisher Scientific completed its acquisition of Life Technologies for approximately $13.6 billion plus the assumption of $1.5 billion in net debt. Also in 2014, another eight-figure deal surfaced—the $17 billion planned acquisition by Merck KGaA of Sigma-Aldrich. On September 28 of this year, more than 12 months after the acquisition was first announced, Sigma-Aldrich said a closing of that mega-deal “is now expected within the next two months.”

This year’s GEN List saw total pay increases for seven of the top 10 CEOs, of which five saw at least double-digit hikes. One CEO more than doubled his total compensation between 2013 and 2014. By comparison, last year's GEN List saw almost as many CEOs finding their total pay reduced as increased from the previous year.

Below is GEN’s updated edition of its list of Top 10 CEOs of public companies that derive at least a majority of their revenues from biopharma tools. CEOs are ranked by their total 2014 compensation as disclosed in company proxy statements. Each executive is listed by name, company, title, 2014 and 2013 total compensation, and the percentage change between the two years. Explanations for significant discrepancies in annual total compensation typically appear in the proxy statements of the companies

#10. Frank Laukien

Chairman, President, and CEO, Bruker

2014 total compensation: $2,680,514

2013 total compensation: $2,216,780

% Change: 12.1%

#9. Norman Schwartz

President, CEO, and Chairman, Bio-Rad Laboratories

2014 total compensation: $4,741,256

2013 total compensation: $4,565,611

% Change: 3.8%

#8. Olivier A. Filliol

President and CEO, Mettler Toledo

2014 total compensation: $4,930,088

2013 total compensation: $5,223,324

% Change: -5.6%

#7. Nachum Shamir

President and CEO, Luminex

2014 total compensation: $5,110,1521

2013 total compensation: N/A1

% Change: N/A

#6. Rakesh Sachdev

President and CEO, Sigma-Aldrich

2014 total compensation: $5,630,524

2013 total compensation: $10,516,8052

% Change: -46.5%

#5. Robert F. Friel

Chairman and CEO, PerkinElmer

2014 total compensation: $8,934,070

2013 total compensation: $6,511,991

% Change: 37.2%

#4. Vincent A. Forlenza

Chairman, CEO, and President, BD (Becton, Dickinson & Co.)

Year Ending Sept. 30, 2014 total compensation: $10,983,518

Year Ending Sept. 30, 2013 total compensation: $9,183,0333

% Change: 19.6%

#3. William P. Sullivan

President and CEO, Agilent Technologies

2014 total compensation: $13,914,733

2013 total compensation: $10,235,672

% Change: 35.9%

#2. Jay T. Flatley

CEO and Director, Illumina

2014 total compensation: $14,856,436

2013 total compensation: $7,296,274

% Change: 103.6%

#1. Marc N. Casper

President and CEO, Thermo Fisher Scientific

2014 total compensation: $17,446,957

2013 total compensation: $16,168,880

% Change: 7.9%

1 Shamir was appointed President and Chief Executive Officer and a member of the company’s Board of Directors on October 14, 2014. He succeeded Patrick J. Balthorp, Sr., who resigned from the positions, but continued to serve as a non-employee consultant to the company through April 14, 2015.
2 For 2013, $5,239,583 of Sachdev’s total compensation was due to a one-time special performance-based equity grant in relation to his new employment agreement. The grant included “performance shares” valued at a $2,379,583, subject to performance criteria based on the company’s “cumulative free cash flow” from July 1, 2013 through June 30, 2016.
3 Becton Dickinson operates on a fiscal year that begins Oct. 1 of the previous year.