Tuesday, September 30, 2014

He gets his second parachute in four years – Business World

He gets his second parachute in four years – Business World

Karolinska Development’s CEO Torbjörn Bjerke receive 3.5 million dollars to quit.

According to a press release from the drug developer Karolinska Development CEO Torbjörn Bjerke leaving the company with immediate effect. This press release uses the language that is commonly used to mask and soften the news when top managers get fired. But that dismissal was not very carefully planned also underlined by the fact that no ordinary replaced.

According to the annual report for 2013 gives notice of termination coffers for Bjerke. He will receive a severance payment of twelve months’ salary if he is terminated by the Company.

Last year Topbjörn Bjerke SEK 3.5 million in salary and a total of 4.5 million in total compensation.

For Bjerke seems unlikely parachute jump unaccustomed. Already in 2010, he floated to the ground after he was terminated from the pharmaceutical company Orexo. Then he got an extra generous offer he could not refuse. Bjerke had worked for the company since 2004 and was considered to be deserving of compensation that was greater than what has been agreed. Therefore, the Board ordered up an extra parachute afterwards with no less than three different components.

First, increased redundancy payment which would be due in one year. It was extended to five months, or 1.5 million, since Bjerke worked on as if nothing had happened to January 2011

For the management got a oavtalad variable salary. The bonus payments exceeded in some cases, the maximum level that was decided at the AGM in 2010.

The third component of Bjerke’s extra compensation is probably unique. Orexo extended the life of the options that would have become worthless when the employee left the company. For Bjerke was that about 84 000 stock options that would not automatically be written down to zero when the CEO was replaced.


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