Elan chief Martin takes 24% pay cut

Directors pay at Irish drug firm Elan fell by over $700,000 (€520,000) last year, with chief executive Kelly Martin taking a 24% pay cut.

According to Elan’s just published annual report for 2012, nearly $3.21m was paid out to 12 non-executive directors, down by 18.5% on the previous year’s £3.94m tally.

Mr Martin’s basic salary remained unchanged at $1m, but a $750,000 reduction in his annual bonus led to his total remuneration package falling by 24.3% last year.

In all, his package came to just shy of $2.2m.

While Mr Martin’s bonus took a hammering last year, he still pocketed a bonus of $1.12m in 2012.

He was also the only executive director listed in the latest annual report, following the departure of former finance director, Shane Cooke. Nigel Clerkin, Elan’s current finance chief, is listed as ‘senior management’ rather than a director.

Last week Elan reported a pre-tax net loss of $733.2m for 2012, but also, more notably, announced its intention to sell its 50% stake in the leading multiple sclerosis treatment, Tysabri, to US pharma, Biogen Idec, which has co-owned the drug for the past 12 years, in a $3.25bn deal.

Tysabri provides Elan with the majority of its revenues, with sales up 8% to $1.6bn last year.