Pfizer replaces CEO with lawyer Kindler

Global pharmaceutical behemoth Pfizer has replaced chief executive Hank McKinnell with Jeffrey Kindler, currently the group's vice chairman and general counsel, with immediate effect. He was also elected to the group's board. Mr McKinnell, who has been with the company for 35 years and CEO since January 2001, will remain as chairman until February next year, when he will retire, one year ahead of schedule.

Mr Kindler, who is aged 51 and has worked for Pfizer since 2002, is seen as having beaten two main would-be internal candidates for the post: Karen Katen, president of Pfizer Human Health; and David Shedlarz, the firm's chief financial officer. Media reports suggest that Pfizer's succession announcement, which came late on Friday July 28, was hastened by internal tensions. The news caused the company's share price to rise $0.55 in regular and after-hours trading to $26.20.

According to the Wall Street Journal, quoting "several people familiar with the action," Pfizer's languishing stock price and internal strife resulting from the CEO contest, were among factors that prompted the board to take this action. There was also controversy over Mr McKinnell's compensation package. Pfizer's share price began 2001 at $41.19. Since then, under Mr McKinnell, the group has made a number of major acquisitions, including the $60.0 billion purchase of Pharmacia.