J&J Cut CEO''s Pay Nine Percent Amid 2010 Recalls
According to the Associated Press, health care giant Johnson & Johnson lowered Chief Executive William Weldon''s total compensation by 9 percent in 2010, after two years of revenue declines and an unprecedented string of recalls that have battered the reputation of medicines like Tylenol and other household brands. The New Brunswick, N.J.-based company awarded Weldon a package worth $23.2 million — including salary, bonus and other awards — down from $25.6 million in the previous year. The company disclosed the pay Wednesday in a Securities and Exchange Commission filing. The maker of Band-Aids, baby shampoo, contraceptives and biologic drugs saw its revenue fall in both 2009 and 2010. Previously the company had seen steady sales growth every year since the Great Depression. Much of the decline has been due to recalls involving millions of bottles of over-the-counter medicines, including Children''s Tylenol, Benadryl and Motrin. Last week federal regulators signed a legally binding agreement with the company to oversee control of operations at three plants linked to the problems.