Category Archives: IMS August 2008 Post SEAS Downturn scrips Vytorin Zetia

Aren’t August 2008 IMS Vytorin/Zetia Scrips Due Out. . . Now?

. . .And, wouldn’t it be perfect form, for the Kenilworth crowd, to bury them in the avalanche of uncertain financial news on Wall Street, today? Look for them after markets close, right here.

Just my (experience-based) hunch.

UPDATED: 09.20.08 @ 8 AM EDT

Check the comments to this post — a thoughtful poster points out that Schering actually dumped a deceptively-huge raise for Dr. Koestler (head science guy) into a Friday night Form 8-K.

My reaction? — we’ll see the August IMS Vytorin/Zetia data Form 8-K on Monday or Tuesday, then — but consider the other cha-cha underway, here:

What strikes me about this Friday night Form 8-K is not just that the board is paying Dr. Koestler more, but how the board chose to disclose (or partially-disclose) it:

The Form 8-K recites that Koestler “only” recieved a 5 percent base salary “bump“. That may be (facially) factually accurate, but then it means he received an undisclosed earlier raise.

How so?

Well, the most recent Schering proxy (at page 34) indicates that his base — for all of 2007 — was $726,250 (before bonus, stock awards, SARs, options and long-term payouts) — NOT the $823,000 recited in the Form 8-K.

The 8-K pegs his new base salary at $864,000 — thus, actually, he garnered an increase of exactly 16 percent — over his 2007 base salary.

So, for me, it is not just that the Chairman of the Compensation Committee of the Board (Hans Becherer — pictured at right) dumped it into a Friday night disclosure (on Schering “layoff press release day“, no less!), it is also that Schering’s board, via Hans Becherer — a named defendant in Cain v. Hassan (which alleges he breached his fiduciary duties in approving excessive compensation for Mr. Hassan in May of 2008, and others, among many other matters) — apparently played “hide and seek” with where the 2008 currency converter pegs “30 pieces of silver“, these days.

When at least 1,000 salespeople lose their jobs, and the rest are lucky ot be able to stay — with no increase, mind you — Koestler walks off with nearly a million a year — up one-sixth from last year — and that is BEFORE stock, and options and bonus.

Sheesh.

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