CEO of EpiPen Maker Mylan Sees 671% Compensation Increase In 8 Years

[Celebrity]

Heather Bresch has enjoyed a 671% salary increase since 2007, when Mylan acquired EpiPen. Compare this to the 400% increase in cost for the device and the modest raises lower level executives received. Why does a CEO need a raise of this magnitude?

According to NBC News, Bresch earned $2,453,456 in 2007, the year of the EpiPen acquisition. In 2015, Bresch’s total compensation was $18,931,068. It may have even been slightly more than that and appears to have been even more than that in 2014.

Like "pharma bro," Martin Shkreli, Mrs. Bresch is profiting from sales of a life saving drug. Martin Shkreli, who has a pending securities fraud trial next June, attended an interview with CBS on the cost of the EpiPen.

Is this evidence that our Health Care system is outdated, and/or that life saving drugs should be subsidized? I think so, because if I had to pay $100 for a life saving device one year, and $600 the next, I would not want Heather Bresch to be getting a raise from money that I spend in order to stay alive.

So who is Heather Bresch, who must live in a golden house and quaff melted pearls at this point? She’s been in the news for a few reasons other than her tenure at Mylan, including a brouhaha around an MBA she received, despite being short of credits, from West Virginia University. The university’s president at the time, Michael Garrison, was described as her “longtime friend and business associate” and ultimately resigned after a faculty vote of no confidence following the episode. Bresch’s father is US Senator Joe Manchin (D-W. Va.).

According to the Forbes article, her father is a Virginia Senator, suffice to say, she comes from money. So it's no surprise that she wants to stay there. According to the old adage, about small business, if you're not growing, you're shrinking. The CEO of Mylan helped grow that company, and the way that she did it was not illegal. But does she even deserve to hold an MBA? She is a known fraud with friends in high places. This is a good example of how establishment politics and economic adversity are causing the rich to get richer. Perhaps it is also an example of how the rich benefit from cheating honest people out of their money.


http://www.forbes.com/sites/emilywi...euticals-sees-671-salary-increase-in-8-years/

 

[bg85]

Why does a CEO need a raise of this magnitude?

her compensation is determined by supply and demand - it's the same way your compensation is determined.

that's not a comment on the morality of the epipen price increase, just an answer to this specific question.

 

[Celebrity]

her compensation is determined by supply and demand - it's the same way your compensation is determined.

that's not a comment on the morality of the epipen price increase, just an answer to this specific question.

I know, I also considered the fact that Martin Shkreli is still on trial. This could soften his image in the public eye, as the supposed "most hated man in America". Raises of this magnitude scream politics. I don't suppose the motivations are purely business-oriented.

 

[Carjosse]

Oh great, another douche bag pharmaceutical CEO.

 

[Carjosse]

her compensation is determined by supply and demand - it's the same way your compensation is determined.

that's not a comment on the morality of the epipen price increase, just an answer to this specific question.

Except the demand for her product is perfectly inelastic, she can charge whatever she wants and people have to buy it. It is exploitation.

 

[Casper]

I think this is going to come back and bite them in the arse big time, once something starts making the rounds of all the news stations the government has a tendency to get involved, should be interesting to watch.

 

[bg85]

I know, I also considered the fact that Martin Shkreli is still on trial. This could soften his image in the public eye, as the supposed "most hated man in America". Raises of this magnitude scream politics. I don't suppose the motivations are purely business-oriented.

the thing is she doesn't get "raises" the way you or i get raises. without more information, that $18 million figure is essentially meaningless. perhaps she received a lot of stock options (which are worthless unless the stock price increases) and the stock price skyrocketed. perhaps the company achieved certain revenue or performance goals that triggered certain bonus or equity payouts that caused a substantial increase in her pay. also, the first "salary" quoted is from several years ago so if the company has increased substantially in size, the market rate for a chief executive's compensation would increase substantially as well.

i mean it's obvious that there's a conflict of interest here when the daughter of a senator from a state ravaged by pharmaceutical dependence is the CEO of a major pharma company, i just don't think her compensation is reflective of that.

 

[bg85]

Except the demand for her product is perfectly inelastic, she can charge whatever she wants and people have to buy it. It is exploitation.

right but that has nothing to do with her compensation. her compensation is determined by supply and demand. i wasn't talking about the epipen itself.

 

[PirateMk1]

Heather Bresch has enjoyed a 671% salary increase since 2007, when Mylan acquired EpiPen. Compare this to the 400% increase in cost for the device and the modest raises lower level executives received. Why does a CEO need a raise of this magnitude?


Like "pharma bro," Martin Shkreli, Mrs. Bresch is profiting from sales of a life saving drug. Martin Shkreli, who has a pending securities fraud trial next June, attended an interview with CBS on the cost of the EpiPen.

Is this evidence that our Health Care system is outdated, and/or that life saving drugs should be subsidized? I think so, because if I had to pay $100 for a life saving device one year, and $600 the next, I would not want Heather Bresch to be getting a raise from money that I spend in order to stay alive.

According to the Forbes article, her father is a Virginia Senator, suffice to say, she comes from money. So it's no surprise that she wants to stay there. According to the old adage, about small business, if you're not growing, you're shrinking. The CEO of Mylan helped grow that company, and the way that she did it was not illegal. But does she even deserve to hold an MBA? She is a known fraud with friends in high places. This is a good example of how establishment politics and economic adversity are causing the rich to get richer. Perhaps it is also an example of how the rich benefit from cheating honest people out of their money.


Forbes Welcome

This is not a health care problem this is two government made problems and this CEO is taking advantage of the problems the government created.

1st problem. The government booted a competing solution out of the marketplace, for supposed problems with it.

2nd problem. The government takes too long in allowing product to come to market.

3rd problem. The government allows patents to be bought and sold multiple times and allows extensions to patents, and allows patents on iterative products.

These are the first three problems off the top of my head with why the douche nozzles at Mylan can be douche nozzles, other than the fact they must not like being in business because this will come and bite them in the ass sooner rather than later.

 

[Celebrity]

the thing is she doesn't get "raises" the way you or i get raises. without more information, that $18 million figure is essentially meaningless. perhaps she received a lot of stock options (which are worthless unless the stock price increases) and the stock price skyrocketed. perhaps the company achieved certain revenue or performance goals that triggered certain bonus or equity payouts that caused a substantial increase in her pay. also, the first "salary" quoted is from several years ago so if the company has increased substantially in size, the market rate for a chief executive's compensation would increase substantially as well.

i mean it's obvious that there's a conflict of interest here when the daughter of a senator from a state ravaged by pharmaceutical dependence is the CEO of a major pharma company, i just don't think her compensation is reflective of that.

right but that has nothing to do with her compensation. her compensation is determined by supply and demand. i wasn't talking about the epipen itself.

You may not be talking about the epipen itself, but rest assured, Mylan, Inc. is. Raising the price of a product which is guaranteed to sell could potentially, probably, maybe have an effect on it's stock price.

Yes, the raise comes largely in the form of stock options according to the documentation which is available in the form of more information from the SEC, and Mylan. On page 58, you can see that Heather Bresch received a sizable bonus in 2014 in the form of "Options Awards" which comes with the following footnote:

Represents the grant date fair value of the option awards granted to the NEO in 2015, 2014, and 2013, as applicable. For information regarding assumptions used in determining such expense, please refer to Note 11 to the Company’s Consolidated Financial Statements contained in the Form 10-K for the year ended December 31, 2015. For 2014, also includes the grant date fair value of SARs granted under the One-Time Special Performance-Based Incentive Program, which were as follows: $13,202,000 for Ms. Bresch; $11,316,000 for Mr. Malik; $9,430,000 for Mr. Coury; and $2,357,500 for Messrs. Sheehan and Mauro.

This is the second consecutive year that she's received a performance-based raise, not to mention about $6 million in Transaction Related Excise Tax Reimbursement, from the chart on page 59, more than any other NEO.

 

[Summerwind]

Heather Bresch has enjoyed a 671% salary increase since 2007, when Mylan acquired EpiPen. Compare this to the 400% increase in cost for the device and the modest raises lower level executives received. Why does a CEO need a raise of this magnitude?


Like "pharma bro," Martin Shkreli, Mrs. Bresch is profiting from sales of a life saving drug. Martin Shkreli, who has a pending securities fraud trial next June, attended an interview with CBS on the cost of the EpiPen.

Is this evidence that our Health Care system is outdated, and/or that life saving drugs should be subsidized? I think so, because if I had to pay $100 for a life saving device one year, and $600 the next, I would not want Heather Bresch to be getting a raise from money that I spend in order to stay alive.

According to the Forbes article, her father is a Virginia Senator, suffice to say, she comes from money. So it's no surprise that she wants to stay there. According to the old adage, about small business, if you're not growing, you're shrinking. The CEO of Mylan helped grow that company, and the way that she did it was not illegal. But does she even deserve to hold an MBA? She is a known fraud with friends in high places. This is a good example of how establishment politics and economic adversity are causing the rich to get richer. Perhaps it is also an example of how the rich benefit from cheating honest people out of their money.


Forbes Welcome

This is the part that makes it just that much worse, imo. I hope she and Manchin take big hits for this.

The Senator’s Daughter Who Raised Prices on the EpiPen - Bloomberg Politics

 

[Celebrity]

This is the part that makes it just that much worse, imo. I hope she and Manchin take big hits for this.

The Senator’s Daughter Who Raised Prices on the EpiPen - Bloomberg Politics

What, you mean for hoarding away $6 million in tax dollars from the American people? Yup, she's filthy rich.

 

[Summerwind]

What, you mean for hoarding away $6 million in tax dollars from the American people? Yup, she's filthy rich.

No, the fact that she's the daughter of a Democratic Senator. I wouldn't have been surprised or disappointed if she had been the daughter of a Republican, would've expected such. But a Democrat! Get them both outta here, imo.

 

[Celebrity]

No, the fact that she's the daughter of a Democratic Senator. I wouldn't have been surprised or disappointed if she had been the daughter of a Republican, would've expected such. But a Democrat! Get them both outta here, imo.

Apparently Virginia is not just for lovers, it's also for old money.

 

[Summerwind]

Apparently Virginia is not just for lovers, it's also for old money.

I think that she's paved her way to new money. I don't see old money in this scenario.

 

[Beaudreaux]

..., Mrs. Bresch is profiting from sales of a life saving drug ...

If that's the standard of evil, then we should hate FEMA employees, full-time Red Cross Blood Services employees, doctors, nurses, and professional emergency medical technicians, farmers, food store owners and their employees, and of course pharmacists, pharmacy techs, owners and investors in pharmacies, and even the old lady that greats people at WalMart if they sell life saving drugs in that store, and anyone else, thousands of job titles and hundreds of millions of people, that profit from selling life saving or life sustaining services or products.

As for me, I don't feel that way. I don't hate people for being successful, and as for EpiPen, there's no real evidence that they are doing anything illegal so until someone shows me that evidence, I'll consider this all just more sour grapes from those that prefer to not pay for services rendered. BTW, my household has a person in our family that has to keep an EpiPen with them at all times, and although I don't like paying more, I'm not going to hate anyone over it or treat them as if they were pure evil.

 

[countryboy]

No, the fact that she's the daughter of a Democratic Senator. I wouldn't have been surprised or disappointed if she had been the daughter of a Republican, would've expected such. But a Democrat! Get them both outta here, imo.

You're just now realizing that Democrats are also in bed with corporate America? This is nothing new. Are you a Hillary supporter? You might want to check out who her biggest supporters are. Not to mention how many millions she has made speaking to large corps such as Goldman Sachs. $153 million in Bill and Hillary Clinton speaking fees, documented - CNNPolitics.com

 

[trouble13]

Heather Bresch has enjoyed a 671% salary increase since 2007, when Mylan acquired EpiPen. Compare this to the 400% increase in cost for the device and the modest raises lower level executives received. Why does a CEO need a raise of this magnitude?


Like "pharma bro," Martin Shkreli, Mrs. Bresch is profiting from sales of a life saving drug. Martin Shkreli, who has a pending securities fraud trial next June, attended an interview with CBS on the cost of the EpiPen.

Is this evidence that our Health Care system is outdated, and/or that life saving drugs should be subsidized? I think so, because if I had to pay $100 for a life saving device one year, and $600 the next, I would not want Heather Bresch to be getting a raise from money that I spend in order to stay alive.

According to the Forbes article, her father is a Virginia Senator, suffice to say, she comes from money. So it's no surprise that she wants to stay there. According to the old adage, about small business, if you're not growing, you're shrinking. The CEO of Mylan helped grow that company, and the way that she did it was not illegal. But does she even deserve to hold an MBA? She is a known fraud with friends in high places. This is a good example of how establishment politics and economic adversity are causing the rich to get richer. Perhaps it is also an example of how the rich benefit from cheating honest people out of their money.


Forbes Welcome

My first question is if they use federal funding to develope these products. If they are i think its reasonable for people to expect a cap on the profits that are a result of money they donated to develop them.

If its 100% privately funded than they are within their rights to charge whatever they want. If people dont like that they should use one of the alternative products available or wait for the patent to run out when the price will fall.

Sent from my SM-G920P using Tapatalk

 

[calamity]

May a bee sting her in the ass.

 

[trouble13]

Except the demand for her product is perfectly inelastic, she can charge whatever she wants and people have to buy it. It is exploitation.

People dont have to buy her product. There are alternatives on the market not to mention its pretty absurd that you value medicine so much yet your unwilling to pay for it at a premium price. The reason we have products like epipens is because its profitable to develope them.

Sent from my SM-G920P using Tapatalk

 

[trouble13]

May a bee sting her in the ass.

Lol

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[AtlantaAdonis]

Thank you, free-market health care system. So glad we have a health care system based on profits and not one based on needs.

 

[Thoreau72]

her compensation is determined by supply and demand - it's the same way your compensation is determined.

that's not a comment on the morality of the epipen price increase, just an answer to this specific question.

I would think that with a big corporation like Mylan, her compensation is determined by the Board Of Directors and any employment contracts relevant?

 

[VanceMack]

Not bad for the daughter of a democrat senator and a major Clinton donor. Not bad at all!

 

[Carjosse]

People dont have to buy her product. There are alternatives on the market not to mention its pretty absurd that you value medicine so much yet your unwilling to pay for it at a premium price. The reason we have products like epipens is because its profitable to develope them.

Sent from my SM-G920P using Tapatalk

Not really, Epipen kind of controls the market. It is an essential medicine, people have no choice. They can still be profitable at a lower price, Canada proves it by regulating the price but Pfizer still makes money. There is a point where it becomes exploitation.