CEO Alex Gorsky is One of J&J’s Largest Insider Shareholders

NEW BRUNSWICK, NJ–Alex Gorsky, CEO of Johnson & Johnson (J&J), is one of the largest insider shareholders in the Brunswick-based consumer and healthcare giant, according to U.S. Securities and Exchange Commission (SEC) filings.

“The insider owns 176,849 shares which have current market value of around $18,795,511,72 [as of March 11],” writes Tom Burr, on the website zergwatch.com.

World-wide chairman of Pharmaceuticals and Chief Scientific Officer, Paulus Stoffels, is an inside shareholder who owned the second most amount of shares: 122, 543, on February 17, 2016, valued at $1,302,3870.

Meanwhile, Dominic Caruso, the company’s VP of Finance and Chief Financial Officer, reportedly holds 116,673 J&J shares worth about $12,400,006.

“Insiders own 0.02 percent of the stock,” reads zergwatch, noting that several executives took part in recent “insider activity.”

Stoffels sold 125,000 J&J shares for $12,803,800 toward the end of February. But following that transaction his shares were still valued at $13,023,870, while the company’s VP of Global Human Resources, Peter Fasolo, disposed of 151,385 shares worth $15,762,200.

Then, general Counsel, Michael H Ullmann, also divested 17,650 shares, while the stocks price was $102.47, in a November 2015 transaction, leaving the insider with 78,685 shares – as stake valued at around $8,362,641.

The corporation will hold its annual shareholders meeting on Thursday, April 28, at 10:00 a.m.  On March 28, the company announced it will "webcast" the meeting live from Hub City's iconic State Theatre.

The week before the big meeting, J&J will host one of its regular investor conference calls, on April 19, to review financial results for January, February, and March. 

Gorsky’s pay jumped 48% in 2014 to $25 million, according to a report from the Wall Street Journal, which said the CEO’s pay was “lifted by an increase in stock and option awards.”

His stock and option awards increased to a total value of $13.6 million, in 2014 from $8.7 million in 2013, while J&J’s board of directors also raised Gorsky’s base salary to $1.5 million from $1.45 million in 2013, according to the report.

J&J said in a regulatory filing, last year, that its CEO’s pay increase was based on its board’s conclusion that the company successfully executed near-term priorities, exceeded financial goals and built on momentum in its pharmaceutical business, according to reports.

Gorsky became J&J's CEO in 2012 after being employed by the comany for 24-years. J&J's board of directors set Gorsky's salary at $1.6 million last year and it will stay the same this year. 

Stoffels reportedly took home $18.3 million in 2014, including a stock award of $10.7 million.

According to another WSJ report, Gorsky’s pay package declined by 4.8% last year to $23.8 million but a lower bonus and decrease in the value of his pension offset the CEO’s higher base salary of $1.6 million.

“[Gorsky] was awarded more in stock and options, totaling $15.3 million [in 2015]. A year earlier, Mr. Gorsky earned $13.6 million in stock and option awards,” reads the journal report.

Gorsky’s target bonus was reportedly $2.8 million at the end of last year. However in 2014 his target bonus was $700,000 higher at $3.5 million.

"I still wake up honored and humbled every day to be able to be in this kind of a position [at J&J]," Gorsky told a group of executives while speaking about the climate of the healthcare landscape at the Wells Fargo Healthcare Conference last fall. 

"When you think about a 138 years in existence … but most importantly, frankly, the impact that we've had on human health — whenever I talk in front of a group like this, I'll start out by saying: When I say the word baby powder or baby shampoo," continued Gorsky, asking: "How many of you can actually smell those two things right now? I mean that's pretty incredible branding, when you think about it.”

One reader commented following the WSJ report: "If J&J's CEO were Jesus Christ, he shouldn't be paid $25 million regardless of the company's performance. This level of pay is unnecessary, obscene and represents a total abdication of responsibility by the board of sycophants, I mean directors. We're looking at the decay of American capitalism.”

 

Dave is New Brunswick Today's business reporter. He covers Johnson & Johnson, retail and restaurant news including new franchises, development, commercial real estate and the fitness industry.

Dave is a Central NJ-based freelancer, but in his reporting finds himself in other parts of the state, including Mercer County, where he grew up and attended Hightstown High School before going to college in Boston.

When not in the office Dave can be found joining outdoor group runs and walks or at part-time marketing jobs.