Friday 25 April 2014

Former Elan executive will take pay hit for new job

Dale Schenk, the former Elan executive who'll be CEO of the Irish company's spun-off Prothena drug development business, is likely to see his $2m (€1.5m) in annual pay drop as he takes up the new role.

Filings with the US Securities and Exchange Commission (SEC) show that Mr Schenk was paid total remuneration of just over $2m in 2011 as chief scientific officer and executive vice president at Elan Pharmaceuticals.

That included a $449,000 base salary and over $1m in stock and stock options awards.

Mr Schenk will head up the new Prothena company, whose shares are expected to be admitted for trading on the Nasdaq in New York on Friday. Elan is also expected to update shareholders this morning on the demerger process.

The SEC filings indicate that Prothena's compensation committee will "closely align" all its executive compensation with similar-sized publicly traded biotechnology companies.

"This will likely result in a reduction to Dr Schenk's current Elan base salary," the filings add.

The separation of Elan's drug development business was approved by shareholders last week. The company is subscribing $26m (€20m) for an 18pc stake in Prothena. It is also stumping up about $100m (€76m) in cash to help the new company continue its drug development work.

Elan shareholders will receive stock in Prothena and retain ownership in Elan itself. Elan will keep control of the 50pc stake it has in the successful multiple sclerosis treatment Tysabri, and some other assets.

Irish Independent

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