New Study Finds The Composition Of Life Science Executive Compensation Plans Changing

It is a challenge to reward and retain top leadership talent within the life sciences sector, particularly in today’s difficult global economic climate. Developing trends in the composition of compensation for senior life science executives is the topic explored in the latest whitepaper published by leading executive search firm, ON Search Partners. Executive Compensation Trends across the Biotechnology & Pharmaceutical Industry | 2009 – Present, written by firm Partner Steve Cornacchia, analyzes compensation plans of leading U.S.-based biotech and pharmaceutical companies over the past three years. The whitepaper and other resources are available for free download on the company’s website at www.onpartners.com.

“We discovered the structure of executive compensation plans are changing broadly in our industry,” said Cornacchia. “The micro-analysis aligns with my own personal experience and I recommend companies take note in order to remain competitive.” The study analyzes the compensation of 157 executives within 50 public life science companies, targeting four executive positions: CEO, CFO, senior R&D, and senior commercial/business function. “Reviewing the overall compensation packages of executives from 2009 through 2011, we found a healthy increase in the median overall compensation, primarily driven by increases in variable incentive compensation,” explained Cornacchia. The whitepaper discusses the move away from cash compensation to more aggressive equity incentives. Stock awards are making up the greater portion of the incentives versus option grants. This trend is seen across all segments of the industry regardless of capitalization. Cornacchia warns, “Clients that still rely on a heavy stock option based package, are losing talent to their competitors who have adopted stock awards as their primary equity driver.”

Steve Cornacchia is a Partner in the Life Sciences practice at ON Search Partners, one of the Top 20 retained executive search firms in the US. He has over a decade of international search experience, consulting multinational biotechnology, medical device and pharmaceutical companies, including some of the world’s foremost companies like TEVA Pharmaceuticals, Allergen, and Shire plc. His broad experience in the industry has given him global access to key commercial and scientific talent across both industry and academia.

About ON Search Partners
ON Search Partners is a global retained executive search firm that locates and lands the best CEO, Board and Vice President talent for the technology, life sciences, cleantech, general industrial and financial services sectors. With offices in the Silicon Valley, Washington D.C., Dallas and Cleveland areas, ON Search Partners provides a “small by design,” highly-personalized, consultative approach for both public and private companies, as well as venture capitalist and private equity firms. For more information, visit www.onpartners.com.