Biogen Idec, Inc. (Massachusetts) CEO Scangos Pay Reached $11.3 Million in 2011

Boston Business Journal by Julie M. Donnelly, Reporter

In his first full year on the job, Biogen Idec (Nasdaq: BIIB) chief executive George Scangos was awarded total compensation of more than $11.3 million, according to regulatory documents filed by the company. Scangos’ compensation included $1.25 million in salary, $2.7 million in bonuses and stock awards valued by the company at $7.23 million. He far exceeded his target payout for the year, which was $7.2 million.

The Weston, Mass.-based biotechnology company’s board of directors said in the company’s preliminary proxy statement that large bonuses for top executives were due to the company exceeding several key performance metrics. Those included a 2011 increase in revenue of 6 percent, and an increase in earnings per share of 15 percent, both above targets. Also a factor driving the bonuses was the company’s stock performance. Biogen’s stock rose 64 percent in 2011.

The company also said that starting in 2011, market share of Avonex and Tysabri, the company’s top-selling products to treat multiple sclerosis, were factors in determining executive compensation.

The next-highest-paid executive at Biogen, Douglas Williams, executive vice president of research and development, was awarded total compensation of of $3.4 million, including salary, bonus and stock awards. Three other top executives received total compensation exceeding $2 million.

Biogen’s board directors made varying sums in 2011, between $377,722 and $691,444.

If Scangos is terminated without cause, including if Biogen is acquired by another company, or he quits for good reason, as defined by his employment agreement, he would receive two times his annual base salary and target annual cash bonus. He could also keep his medical and dental benefits for up to two years.

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