Eli Lilly and Co. CEO John Lechleiter received a compensation package valued at $16.4 million for 2009, up 54 percent from 2008, the year he became the drugmaker’s chief executive, according to an Associated Press calculation of figures disclosed Monday in a regulatory filing.
Also president and chairman, Lechleiter saw his salary rise nearly 11 percent to $1.48 million and his performance-related cash bonus jump 31 percent to $3.55 million.
Lechleiter, 56, also was granted stock valued at $11.25 million when it was awarded in February 2009. He won’t receive $3.75 million of that total until 2011, spokesman Mark Taylor said.
Indianapolis-based Lilly makes top-selling drugs including the anti-psychotic Zyprexa and the antidepressant Cymbalta.
Anthem pressed to justify rate hike
The Obama administration on Monday asked California’s largest for-profit health insurer to justify plans to increase customers’ premiums by as much as 39 percent, a move that could affect 800,000 people.
In a letter to the president of Anthem Blue Cross, Health and Human Services Secretary Kathleen Sebelius said she was disturbed to learn of the planned increases, calling them “extraordinary.”
Sebelius said Anthem Blue Cross’ parent company, Indianapolis-based WellPoint Inc., “has seen its profits soar, earning $2.7 billion in the last quarter of 2009 alone.”
Not counting roughly $2.2 billion it gained from the sale of a pharmacy benefit management subsidiary, WellPoint earned $536 million in the final three months of last year. WellPoint is the largest commercial health insurer based on membership. It operates Blue Cross Blue Shield plans in 14 states.
Judge pledges to rule on BofA settlement
A judge promised Monday to decide by the end of next week whether to approve a $150 million settlement between the Securities and Exchange Commission and Bank of America over civil charges alleging the bank misled shareholders when it acquired Merrill Lynch.
U.S. District Judge Jed Rakoff last year rejected a $33 million settlement stemming from the early 2009 acquisition, calling it a breach of “justice and morality” that was “done at the expense, not only of the shareholders, but also of the truth.”
The SEC had accused Bank of America of failing to disclose to shareholders that it had authorized Merrill to pay up to $5.8 billion in bonuses to its employees in 2008 even though the investment bank lost $27.6 billion that year.
Mexico plant tapped to build Fiat minicar
Chrysler Group LLC says it will invest $550 million to build the Fiat 500 minicar at its assembly plant near Mexico City.
Chrysler CEO Sergio Marchionne says the new work at its Toluca plant will create 400 jobs. He said Monday the company will begin making the model in December for U.S. and Latin American markets.
Chrysler, controlled by Italian automaker Fiat Group SpA, says the Mexican government has provided a $400 million incentive package for the project, the majority of it as loans. The company already employs 2,000 workers to manufacture the PT Cruiser sedan and the Dodge Journey at the factory.
