J&J Fights Claims That Bill Weldon Was Paid Too Much

The Bill Weldon legacy lives on, at least in court. More than a year after Weldon retired as Johnson & Johnson ceo, a simmering dispute continues in a New Jersey federal court, where a J&J shareholder has filed a so-called derivative lawsuit that claims the healthcare giant provided a “lavish” compensation package that was not in keeping with his performance and belied the storied company credo. The dispute hinges on a series of widely publicized transgressions that have plagued Johnson & Johnson for the past several years – countless product recalls, illegal marketing practices for prescription medicines and faulty manufacturing – and marred Weldon’s tenure. Although investors have forgiven the company, the lawsuit is playing out as the healthcare giant attempts to put those issues to rest. In recent weeks, J&J agreed to pay $2.2 billion to settle criminal and civil charges for off-label marketing of its Risperdal antipsychotic (look here) and proposed a $2.5 billion settlement with 8,000 people who alleged harm from a hip implant that had excessive, but undisclosed failure rates (back story). And J&J soon hopes to win an FDA blessing to reopen a consumer products plant that had numerous quality-control problems (read here). The lawsuit, which was filed two years ago by the George Leon Family Trust, argues that the J&J board breached its fiduciary responsibilities by overcompensating Weldon and failing to remedy its pay practices. The suit a...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs