COMP NEWS – Bristol Myers Squibb’s CEO took a cash incentive pay cut that left this portion of his compensation at its lowest since 2017. While the company excelled in many financial performance measures, as many big pharma companies did during the pandemic, it fell short in regards to the “human capital” category.

MS met or exceeded several targets that it has set to evaluate its executives’ pay. The company’s revenues, excluding the effect of foreign exchange rates, reached $46.2 billion and came above the company’s $45.8 billion target. The board said BMS’ pipeline development also exceeded expectations.

Interestingly, when it comes to Caforio’s personal goal, the board said BMS “exceeded all customer service metrics and supply chain reliability targets,” even though it has publicly described a struggle to meet cell therapy demand because of production constraints.

The company did not achieve its goals in regards to employee engagement and retention, causing the CEO to receive less than ¾ of the potential payout from the “human capital” category.

Beyond the business metrics, the company’s performance lagged in the “human capital” category, leading to a 73% payout against that goal. The item focuses on employee engagement and retention by incorporating quarterly employee surveys and voluntary attrition rate. BMS failed to hit target on the quantitative human capital goal, even though the board said it at least met industry benchmarks.

While this does not come as great news for CEO Giovanni Caforio, it serves as a good sign for the future of employee culture, as this sort of compensation package means that their survey results are causing tangible effects on leadership.

Last year, BMS published its inaugural diversity & inclusion report and ESG report. The company has committed to double executive representation of both Black and Latinx employees in the U.S. by the end of 2022.

To read more about Bristol Myers’ CEO, click here.

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