Valeant ex-CEO to continue on as 'consultant'

May 31, 2016, 12:58 PM EDT
Valeant ex-CEO Michael Pearson.
(Source: Senate Democrats/flickr)

Valeant's ex-CEO will continue on as a "consultant," being paid handsomely.

MarketWatch writes:
Valeant Pharmaceuticals International Inc. VRX, -0.04% said Tuesday that former Chief Executive Michael Pearson will continue to act as consultant to the company until December 31 of 2017 as part of his separation agreement with the company. Pearson, who was terminated on May 2, will be paid severance of $9 million and will be entitled to a pro-rated annual bonus for the 2016 fiscal year, the company said in a filing with the Securities and Exchange Commission. Pearson remains bound by the company's confidentiality and non-compete agreement and has been asked to sign a non-disparagement agreement. Valeant shares were slightly higher in morning trade, but are down 72% in the year so far, amid a scandal over the company's drug pricing policies and accounting practices.
Reuters writes:
He can earn $83,333 a month this year as a consultant and next year, the company agreed to pay him $15,000 per month for consulting services, plus expenses. If Valeant severs the consulting services, Pearson will still receive the payments that would have been due, the document said.
Bloomberg notes:
Pearson was replaced by former Perrigo CEO Joe Papa, who has taken steps to expand a drug price rebate program that was the subject of a Congressional hearing. Valeant is also exploring the sale of some of its smaller cosmetic and pharmaceutical assets, according to people familiar with the matter, and continues to search for ways to reduce its debt.