A prominent U.S. lawmaker may be upset that AbbVie (ABBV) ties the bonus given chief executive Richard Gonzalez to sales of the Humira rheumatoid arthritis treatment, but most shareholders seem unconcerned.
At the drug maker’s annual meeting on Friday, an overwhelming majority of stockholders rejected a proposal that would have required AbbVie to compile an annual report on how pricing is used to set executive compensation, according to a coalition of faith-based investor groups that submitted the proposal. On a preliminary basis, 69% of shareholders voted down the proposal.
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May I obesrve that the erstwhile Mr Rea makes a sloppy comparison? “The dollar you need today to buy Humira is not as powerful as it was in 2007.” True but that means the price in 2007 of $17,160 would be worth $21,038 USD today. The delta between that number and the current price of $67,253 USD is still quite an increase but closer to 225% than the 300% he posits.
[Inflation calculation courtesy of https://www.usinflationcalculator.com/ ]
Ah, I fogot to add the beloved caveat about the price difference ‘before applicable discounts and rebates’ ….. whatever they really are in this case.