Ebb & Flow
Five executives at MedImmune (MEDI) will be receiving more than $280 million when the $15.6 billion acquisition by AstraZeneca (LSE:AZN; AZN) closes. By comparison, the biotech sector raised a total of $566 million last week, just over twice the size of the payday for MEDI's top brass.
According to MEDI's SEC filing, the executive team will see all their options vest at the close and be cashed out at the $58 deal price. They also will receive payments for bonuses as well as amounts owed through their employment agreements. All told, the payout will exceed the $280 million, and doesn't include MEDI shares already held by each of the executives.
Vice Chairman, President and CEO David Mott, who has been with the company since 1992, stands to get at least $140 million in cash upon completion of the deal. Most of that comes from vested and unvested stock options in Mott's name.
President of R&D James Young, with MEDI since 1989, will bring in at least $58 million. He has been with MEDI since 1989.
Chairman and President of MedImmune Ventures Wayne Hockmeyer, who founded the company in 1988, will get at least $57 million.
EVP and CMO Edward Connor and SVP and CFO Lota Zoth will also receive tidy sums (see "MedImmune Payout").
MEDI's financial advisor, Goldman Sachs, also looks to be a big winner. The firm's asset management arm owns more than 22 million MEDI shares, or 9.3% of the company. At the takeout price of $58, the stock is worth almost $1.3 billion. In addition, the investment bank will be paid $30 million for its advisory services upon completion of the acquisition(see BioCentury, April 30).
T. Rowe Price and Fidelity were the other investors that held more than 5% of the company, with 15.9 million (6.7%) and 12.3 million shares (5.1%), respectively. At the deal price, T. Rowe's stake is worth $922.2 million and Fidelity's position is worth $713.4 million.
For the rank and file at MEDI, AZN agreed to pay a retention bonus of 15-25% of an individual's salary, depending on job level, on the first