By GEOFF MULVIHILL and TOM MURPHY Associated Press
OxyContin maker Purdue Pharma paid its CEO $9 million and its board chairman nearly $4 million in the 12 months before the company's bankruptcy filing last month, according to recently filed financial documents.
Five other board members overseeing the private company were paid a combined $3.7 million over that span.
Purdue, a privately held company that usually does not disclose detailed financial information, had to make the information public as a part of its bankruptcy proceedings.
Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware, said it's hard to compare CEO Craig Landau's pay package to other executives. But the money paid to Steve Miller, a corporate turnaround specialist who was brought in to lead Purdue's board of directors last year, seems excessive, he said.
"In a public company, that would be a rather extraordinary sum to pay a non-exec chair," Elson said, while noting that Purdue can pay whatever it wants.
"In a private company, it's private and it's between them," he said.
In a statement Wednesday, Purdue said its employees have highly specialized skills that would be hard to replace.
"During the past several years, employees have had to work under very challenging conditions as litigation has accelerated and the company has been targeted by the plaintiffs in the media," the company said. "Throughout this period, Purdue's employees and executives have maintained their professionalism and continued to develop, manufacture and provide safe and effective, FDA-approved medicines to meet patients' needs."
The court documents say pay for the company's executives included salary, incentives, retirement plan contributions and an auto allowance, among other things.
They were filed late Tuesday in U.S. Bankruptcy Court in White Plains, New York. Purdue sought bankruptcy protection in September in its effort to settle nearly 2,700 lawsuits that seek to hold the company accountable for its role in the nation's opioid epidemic.
The company's proposed settlement with state and local governments could be worth up to $12 billion over time.
The documents don't shed any new light on how much members of the Sackler family who own Purdue have profited from the company. They show family members receiving some expense reimbursements and other payments of up to a few thousand dollars, but no major distributions to them in the 12 months before the bankruptcy filing. A deposition filed in court previously cited payments to the family of $12 billion to $13 billion.
The biggest questions surrounding Purdue's settlement efforts involve the Sacklers. The company is asking a judge to pause hundreds of lawsuits filed against members of the family so they can contribute at least $3 billion to the settlement.
Several state and local governments oppose that, arguing they should be allowed to continue their lawsuits against the family. Several government attorneys have argued that family members should pay more than they have pledged so far. A hearing on the matter is scheduled for next week.
The company, which reported having nearly $1.4 billion in cash, has previously said it was spending about $5 million a week on lawyers and other costs associated with litigation. This week's filings back that up, showing law firms being paid millions.
The filings are for more than 20 Purdue-related companies. Most don't show executive pay. But four executives at Purdue subsidiaries were shown receiving $1.5 million to $3 million each.
___
Mulvihill reported from Cherry Hill, New Jersey, and Murphy reported from Indianapolis.
___
Follow Mulvihill at http://www.twitter.com/geoffmulvihill and Murphy at http://www.twitter.com/thpmurphy
Other articles from Hispanic Outlook:
CUNY’s First Latino Chancellor - Felix Matos Rodriguez
When Felix Matos Rodriguez was named the eighth chancellor of New York’s prestigious City University of New York (CUNY) system and its first Latino leader in May of 2019, it was a towering achievement for him and the city’s entire Latino population. CUNY is a vast network consisting of 25 campuses including 11 senior colleges, seven community colleges, one undergraduate honors college and seven post-graduate institutions. It enrolls more than 275,000 students, which requires an operating budget of $3.6 billion. Among its alumni, it has produced 13 Nobel Prize winners and 24 MacArthur Fellows. It’s as vital to New York City as its complex subway system. Every CUNY college provides a pathway for bright working class students to become doctors, attorneys, teachers, entrepreneurs, nurses and librarians—to name a few careers. And CUNY’s student body is as diverse and multicultural as New York City itself, consisting of 30% White students, 26% Latino, 23% African American and 19% Asian. Of its student body, 35% were born outside the U.S., and...
Preventing Sports Injury And Death
National Athletic Trainers’ Association (NATA) has released though its scientific publication, The Journal of Athletic Training “Preventing Catastrophic Injury and Death in Collegiate Athletes: Interassociation Recommendations Endorsed by 13 Medical and Sports Medicine Organizations.” The paper includes recommendations in six areas that address the prevention of catastrophic traumatic (caused directly by participation in a sports activity) and non-traumatic (result of exertion while participating in a sports activity) injury and death. The recommendations stem from the Second Safety in College Football Summit in 2016 and have been reviewed and endorsed by relevant stakeholders and endorsing organizations. The paper also provides an actionable checklist for use by those with a responsibility to the health and wellbeing of collegiate student athletes. “Almost all cases of non-traumatic catastrophic injury and death are preventable and or treatable,” said NCAA Chief Medical Officer, Dr. Brian Hainline. “We’ve seen a clear improvement in policies, research, education and…
Chasing Scholarships Endangers Students
Editor’s Note: A new survey reveals that intense pursuit of sports scholarships leaves high school students injury-prone later in life.
Sixty million kids participate in organized athletics each year with ever increasing amounts of children specializing in one sport before the age of 14 with hopes of a college scholarship or professional career on the line. However, researchers presenting their work at the AOSSM/AANA Specialty Day earlier this year revealed that this early intense participation might come at the cost of increased injuries during their athletic careers. The American Orthopaedic Society for Sports Medicine (AOSSM) is the premier global organization representing the interests of orthopaedic surgeons and other professionals who provide comprehensive health services for the care of athletes and active people of all ages and levels. AOSSM is also a founding partner of the STOP Sports Injuries campaign to prevent…
The Health And Safety Of Student Athletes
A survey of college and university athletic trainers shows that 51.73% of their collegiate-level sports programs follow the NCAA-legislated independent medical model of care. In addition, 76.26% of respondents feel they have medical autonomy—the unchallengeable authority to determine medical management of athletes. The survey was conducted by the National Athletic Trainers’ Association’s (NATA) Intercollegiate Council for Sports Medicine (ICSM). Results were presented at a press briefing during NATA’s 70th Clinical Symposia in Las Vegas. The NCAA legislation for student athletes is a model that ensures independent medical care by giving primary athletic health care providers—defined as team Physicians and athletic trainers (ATs)—the autonomous authority to make decisions related to the health and safety of athletes without the influences of the athletic department, including coaches and other personnel. Autonomous authority is the cornerstone for independent medical care for student athletes. The survey also shows that more than one-third (36.32%) reported…
Place your job ad in our classified page on the HO print & digital Edition
