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Former Vertex Pharmaceuticals (MA) (VRTX) CEO Saw 10 Percent Pay Cut


4/12/2012 6:50:23 AM

Boston Business Journal by Julie M. Donnelly, Reporter

Former CEO of Vertex Pharmaceuticals (Nasdaq: VRTX), Matthew Emmens, saw his total compensation slide to approximately 13.4 million in 2011, down from $14.9 million the previous year.

This is despite the fact that Emmens oversaw the transformation of the Cambridge, Mass-based biotechnology company to a profitable drug maker following the FDA approval of the company’s drug for hepatitis C, Incivek, in May, 2011. The company has since received FDA approval for its cystic fibrosis therapy, Kalydeco, in January 2012. The company’s increased in total annual revenues by 884 percent in 2011 as compared to 2010, to $1.4 billion. Incivek revenues accounted for $950 million of that.

Emmens' compensation included salary of $1.2 million, a bonus of approximately $3 million, stock awards valued at $1.8 million and stock options valued at $7.3 million, according to regulatory documents. The decline was due largely to a reduction in the value of stock options Emmens was awarded.

Emmens officially stepped down as CEO on Feb. 1, 2012 and he was replaced by Jeffrey Leiden. Leiden will make a starting base salary of $1 million in 2012.

Emmens will stay on as Executive Chairman of the company’s board of directors until May 22. After that, Emmens has agreed to an 18 month non-compete clause barring him from working for a rival company.




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