Mylan remains under fire after significantly raising prices for the allergy reversing drug, EpiPen. As more questions are thrown their way, people are beginning to focus on the large payday top executives are receiving. As one of the smaller companies in the drug industry, with EpiPen being the only big-selling brand product they supply, Mylan holds some of the top paid executives, even compared to larger companies with little to no explanation.
In the article, “EpiPen Maker Dispenses Outsize Pay”, Mark Maremont writes:
“Mylan’s combined total of $292.1 million in pay for its top five executives over the five years ended last December outpaced that at industry rivals several times its size, according to the analysis, including Johnson & Johnson, Pfizer Inc., Bristol-Myers SquibbCo. and Eli Lilly & Co.
Of the 22 companies Mylan named in its 2016 proxy as its preferred peer group for pay purposes—some of them much larger than itself—none paid their top managers more than Mylan over the same five years, the analysis showed.”
There is speculation that the EpiPen price increase was in fact, due to the incentives agreed upon by the company’s board, which included a rewards plan for executives when they hit high growth targets.
This raises the question if there is an ethical responsibility for companies to provide reasonable priced, life saving drugs, as consumers shouldn’t pay a large amount simply to improve the salary of top executives.
Read the full article, EpiPen Maker Dispenses Outsize Pay, from the Wall Street Journal for more information.