BOTHELL – The acquisition of ICOS Corp. will result in payouts to senior executives totaling nearly $68 million, according to regulatory filings.
Paul Clark, ICOS’ 59-year-old chairman and chief executive, will receive more than $23 million when severance pay, bonuses and stock awards are added together.
Four other executives are in line to each receive $5 million or more if the acquisition is finalized. Compensation for Gary Wilcox, the company’s executive vice president, will total more than $8 million; Michael Stein, the chief financial officer, will receive about $7 million; and David Goodkin, ICOS’ chief medical officer, will receive just under $6 million, according to the financial filings. Thomas St. John, vice president of therapeutic development, will receive about $5 million.
ICOS, which grew into the largest biotechnology company based in Washington after creating the impotence drug Cialis, announced Oct. 17 its intention to be bought by Eli Lilly &Co. for $2.1 billion. Lilly previously had partnered with ICOS in a joint venture to develop and market Cialis.
Immunex’s CEO Ed Fritzky received more than $6 million and other benefits when Amgen bought his company, then the region’s largest biotech, in 2002.
That may not have been as controversial, however, because Fritzky was integral to Immunex’s growth, said Paul Latta, biotech analyst with McAdams Wright Ragen.
On the other hand, Clark and his board agreed to sell ICOS at a share price below where the stock was when he assumed control of the company in 1999, Latta said. A small group of investors has grumbled in the past about Clark’s compensation growth as ICOS’ stock remained well below its all-time highs.
The future of those below ICOS’ executive ranks still isn’t clear. Lilly already has informed about 180 sales representatives working for ICOS that they are not needed, though they can apply for similar positions with Lilly. As for the rest of the 500 or so ICOS employees in Bothell, Lilly hasn’t said more than it plans “significant” cuts if the merger goes through.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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