Analysis of compensation policies for executives and directors of bio-pharmaceutical companies in the context of the global spread of COVID-19

Abstract

This paper analyzes the AbbVie, Pfizer and Johnson&Johnson biopharmaceutical industry companies in the context of the spread of COVID-19.There have been articles using 3P1M to study compensation patterns in other industries and it is necessary to use 3P1M to analyze compensation policies of biopharmaceutical companies in order to motivate employees or directors as COVID-19 affects people's health around the world. Firstly, this paper using the quantitative analysis method compared the three companies’ differences of executive compensation about 3P1M and summarized the similarities of them. They have similar philosophies of their compensation policies in three aspects. And the executives of these three companies receive retainer but the components of their cash compensation are different. Among 3P1M, the most different part of 3p1M is their compensation incentive policy that related to executives’ performance. Secondly, this part analysis and compared the similarities and differences of the components of director compensation policy by aspects of the retainer that paid to different board members, incentive grants, stock ownership guidelines.