Johnson & Johnson cut CEO William Weldon’s performance bonus by 45% in 2010. During the year, the company saw several product recalls. Weldon’s performance bonus for 2010 was $1.98 million, down from $3.6 million for 2009, according to documents filed by the company with the Securities and Exchange Commission. The bonus was paid 85% in cash and 15% in company stock.
Weldon’s total compensation was valued at $30.8 million for 2009, the last full year for which total compensation was reported. The compensation includes salary, bonus, changes in pension value, and other benefits.
No doubt Johnson & Johnson had their reasons for cutting Weldon’s bonus. Many of these kinds of recall issues, such as J&J’s misprint on Sudafed labels, are not the fault of a CEO. The company has chosen to hold the CEO responsible for these recalls, but should 2011 prove to be a better year for J&J it can be expected that Weldon’s performance bonus will increase again.
For more about William Weldon, as reported by MarketWatch, please click here.