J&J's (JNJ) CEO Gets 9% Pay Cut in 2010

After a plethora of falling sales and medicine recalls, Johnson & Johnson (NYSE:JNJ) Chief Executive Officer William Weldon had his compensation slashed by 9 percent in 2010.

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.

But J&J's board gave Weldon overwhelmingly positive marks for the year, saying he "provided strong leadership during a very demanding year." In commenting on the string of recalls -- 20 since September 2009 -- the board said "Weldon's leadership and engagement with employees, legislators, regulators, investors and the news media enabled the company to deal with the issues."

The board appeared to tie most of the recall problems to consumer products chairwoman Colleen Goggins, who oversaw the company's McNeil Consumer Healthcare unit before retiring earlier this month. Her total compensation fell 12 percent to $6.5 million for the year. Still, the board did not level any direct criticism at Goggins, instead praising her "distinguished career with the company."

Weldon's salary grew 3 percent for the year to $1.9 million. His annual performance bonus fell $1.6 million from $3.6 million last year. But when combined with other components of his incentive package, his total non-equity compensation package totaled $12 million, down just 6 percent from the previous year.

J&J was trading at $57.60, falling $0.88, or 1.50 percent, as of 2:14 PM EDT.




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