VRX Bausch Health Cos

By Maria Armental 

Valeant Pharmaceuticals International Inc., which came under fire after it raised dramatically drug prices, on Wednesday disclosed a multimillion-dollar pay package for its new chief executive.

Under the terms of the contract, Joseph C. Papa, the chief executive of rival Perrigo Co. who is slated to take over as Valeant's chairman and CEO next month, will receive a $1.5 million annual salary. But the 60-year-old stands to make much more thanks to restricted stock awards that would vest if Valeant's stock reaches certain thresholds.

Mr. Papa's pay package also includes a one-time payment of $8 million to offset lost compensation for his leaving Perrigo. As a new hire, Mr. Papa will also receive stock awards with a grant-date fair value of $10 million.

At Perrigo, which this year changed the end of its business year to Dec. 31, Mr. Papa received $11.5 million in total compensation, including a $1.2 million salary, for the year ended June 27. He received an additional $11.5 million, including a $500,000 bonus for successfully defending Perrigo from a hostile takeover bid from Mylan NV, from June 28 through the end of the year.

Meanwhile, Valeant said CEO J. Michael Pearson's annual salary was reset at $2 million, backdating the change to Jan. 1. The change, the company said, reinstates the annual salary he received before his most recent contract, signed last year. Under that contract, Mr. Pearson didn't receive a salary as of Jan. 1, 2015.

In 2014, Mr. Pearson received $10.3 million in total compensation, including a $1.9 million salary, according to regulatory filings.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

April 27, 2016 20:42 ET (00:42 GMT)

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