(Adds severance payment details)
NEW YORK, May 31 (Reuters) - Michael Pearson (LON:PSON), the former
chief executive officer of Valeant Pharmaceuticals (NYSE:VRX) International
VRX.TO , will receive a $9 million severance payment and agreed
to a consulting agreement worth hundreds of thousands of
dollars, according to a document filed with regulators.
Pearson, who left Valeant on May 2 after a year in which it
had drawn scrutiny for its sharp drug price increases, financial
relationship with a specialty pharmacy and accounting practices,
is also eligible for a pro-rated performance bonus for 2016, the
separation agreement document said.
He can earn $83,333 a month this year as a consultant and
next year, the company agreed to pay him $15,000 per month for
consulting services, plus expenses. If Valeant severs the
consulting services, Pearson will still receive the payments
that would have been due, the document said.
After that time, Pearson could be paid $3,750 per day for
any consulting services. He also promised to cooperate with the
company on providing information related to government
inquiries.
Pearson, who was replaced by former Perrigo CEO Joseph Papa,
had led Valeant since 2008, driving its growth through serial
acquisitions. Under his watch, the company's stock hit a high of
$263.70 in August of 2015 and fell as low as $25.27 in April of
2016 due to doubts that the company could recover from its hefty
debt load. It hit a year-low of $23.55 on May 12, after he left.
Valeant announced Pearson's departure in March as activist
investor William Ackman took a position on the company's board
of directors.