How much is one month of advice from Michael Pearson worth? Valeant Pharmaceuticals is willing to pay more than $83,000.
Valeant stock may have tanked and its growth strategy imploded during his final months running the beleaguered drug maker, but Pearson was just awarded a consulting contract that will pay him more than $583,000 through the end of this year and as much as $180,000 next year, or $15,000 a month, according to a filing with the US Securities and Exchange Commission. The fees will be pro-rated for partial months.
The consulting services were listed in a letter that outlines his separation agreement, which was dated May 26, more than three weeks after his tenure as Valeant chief executive ended. He has since been replaced by former Perrigo Chief Executive Joe Papa.
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Now, Mr Ed, for a 22 working day month, that only averages a little less than $500/ hr, or $4K USD/day. Not as much as some attorneys, although the 22 days/ month may be a bit too optimistic on my part.
Observer, here is the Separation Agreement filed today with the SEC. Pearson will not consult for more than 20% of his former regular hours. That works out to 8 hours out of a 40 hour work week. That’s 32 hours/month. $83,000/32 = approximately $3000/hour, plus medical, dental and all the other fringe benees for two years. Gets an office in downtown Madison, one of the toniest suburbs in NJ.
http://hsprod.investis.com/shared/v2/irwizard/sec_item_new.jsp?epic=valeant_pharmaceuticals&ipage=10969400&DSEQ=2&SEQ=&SQDESC=SECTION_EXHIBIT&exp=&subsid=41
Pearson will advise on how to throw poo on the wall and make it stick.
Given that their Madison building had to the original YMCA, pharmavet1, it will be more like ‘through the ring’ down in the former basketball court, as Ted Cruz would say.