It wasn't Merck's top executives that made this decision. It was Merck.
Merck Offering Top Executives Rich Way Out
By ALEX BERENSON
Published: November 30, 2004
With its stock plunging and its ability to thrive as an independent company uncertain, the drug giant Merck has adopted a plan that could give its top executives big bonuses if the company is taken over.
Merck has been reeling since it withdrew its arthritis treatment Vioxx from the market on Sept. 30 after acknowledging that studies have found a higher incidence of heart problems in people taking the drug.
Yesterday, Merck said in a federal securities filing that its board had decided to give its top 230 managers the opportunity for a one-time payment of up to three years of salary and bonus if another company bought Merck - or merely bought over 20 percent of its shares. Any executive who was fired or resigned for good cause would receive the payment.
