Pfizer chief's retirement deal could be $200M

Henry McKinnell, former chief executive of US drug giant Pfizer, could receive a retirement package of $200.0 million, according to a report by the Associated Press. Mr McKinnell was forced to step down a year earlier than scheduled following the reaction of investors to his previously announced $180.0 million retirement deal.

Details of Mr McKinnell's retirement, which were provided to the Securities and Exchange Commission on December 21, included an estimated $82.3 million in pension benefits, $77.9 million in the form of deferred compensation, as well as cash and shares to the value of more than $20.7 million. The total value of the package could reach nearly $200.0 million, depending on a potential $18.3 million stock award that is based on Pfizer's future performance.

Pfizer also said that it would make a lump sum severance payment of $11.9 million, $2.2 million as part of Mr McKinnell's 2005 bonus and a further $305,644 in unused holiday pay. Mr McKinnell was replaced by the company's then vice chairman and general counsel Jeffrey Kindler in summer 2006 (Marketletter August 7, 2006), who also became chairman of the firm's board on December 19. Mr Kindler has a much lower annual salary and a payment scheme more closely linked to stock performance.