Share |

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

Company Preparing For Annual Shareholder Meeting on April 28 in NB
Alex Gorsky
J&J CEO, Alex Gorsky, owns more stock than any other co. insider. His salary will remain at 1.6 mln Johnson & Johnson

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.”