Sweeter Icos bid is nice deal for execs
Icos shareholders got a 6. 3 percent increase for their shares when Eli Lilly on Monday raised its offer for the company to $34 a share...
Seattle Times business reporter
Icos shareholders got a 6.3 percent increase for their shares when Eli Lilly on Monday raised its offer for the company to $34 a share.
But Icos senior executives will do much better. Their cash payouts upon leaving the company will be 11.3 percent higher because of the sweetened offer, according to an updated filing with the Securities and Exchange Commission.
Top executives as a group were due to collect $67.8 million for selling the company under the agreement struck with Lilly in October for $32 a share. With the new bid, they are now expected to receive a combined $75.5 million.
The payments are for severance, cashed-out stock options, restricted stock awards and other bonuses for retention and closing the deal.
At the top of the list of beneficiaries is Paul Clark, 59, Icos chairman and chief executive. Clark is now due to receive $26 million in his "golden parachute," a 12 percent increase over his previous expected payout of $23.3 million.
Others cashing out big include Executive Vice President Gary Wilcox ($9.4 million), Chief Financial Officer Michael Stein ($7.8 million), Chief Medical Officer David Goodkin ($6.7 million).
In an interview Tuesday at the company's Bothell headquarters, Clark said he and the board didn't agree to sell Icos for personal reasons. "This is a decision being driven by what's best for the shareholders."
The company has given layoff notices to nearly all of its 700 employees, which will become effective if shareholders approve the sale. About 125 employees in contract manufacturing may be retained once Lilly sells that operation to another company, Clark said.
All laid-off workers are being offered six months' pay as severance benefits, in addition to the value of their stock, he said.
Luke Timmerman: 206-515-5644 or email@example.com