Perrigo CEO Lockwood-Taylor extends contract through 2028

Published 26/02/2025, 23:56
Perrigo CEO Lockwood-Taylor extends contract through 2028

Perrigo Company plc (NYSE:PRGO), a global provider of over-the-counter health and wellness solutions with a market capitalization of $3.4 billion and annual revenue of $4.4 billion, has announced the extension of Patrick Lockwood-Taylor’s tenure as CEO, President, and Board member. According to InvestingPro analysis, the company currently offers an attractive dividend yield of 4.6% and has maintained dividend payments for 23 consecutive years. The renewal, effective today, comes with an amended employment agreement set to expire on June 30, 2028, with provisions for automatic annual renewals barring a 90-day notice of non-renewal by either party.

Under the new contract, Lockwood-Taylor’s annual base salary is set at $1,240,000, with a minimum target annual bonus of 125% of his base salary. The actual bonus could range from 0% to 200% of the target, with a guaranteed 50% payout if minimum performance metrics are met. While the company wasn’t profitable in the last twelve months, InvestingPro data indicates analysts expect Perrigo to return to profitability this year, with the stock currently trading below its Fair Value. For deeper insights into Perrigo’s financial health and future prospects, investors can access comprehensive Pro Research Reports available on InvestingPro. Additionally, he is eligible for annual long-term incentive grants valued at no less than $6,600,000 and will continue to participate in the company’s employee benefit plans.

The agreement also includes severance terms. If Lockwood-Taylor is involuntarily terminated without cause or resigns for good reason, excluding a work location change to Dublin, he will receive a prorated bonus, 1.5 times his salary and target bonus in cash severance, and up to 24 months of health care coverage. His equity awards will continue to vest for 36 months post-termination, with performance-based awards dependent on actual outcomes.

In the event of a change in control followed by termination without cause or resignation for good reason, Lockwood-Taylor would receive a prorated bonus based on target performance, double the sum of his salary and target bonus in cash severance, 18 months of paid health care coverage, and immediate vesting of equity awards at target performance levels.

Lockwood-Taylor’s severance benefits are contingent upon signing a release of claims in favor of Perrigo. He has also agreed to adhere to post-termination non-compete and non-solicitation covenants for 24 months, a perpetual confidentiality covenant, and a perpetual mutual non-disparagement covenant.

This information is based on a press release statement and the full details of the employment agreement are filed with the SEC as Exhibit 10.1 to Perrigo’s Current Report on Form 8-K. The company maintains a strong financial position with a current ratio of 2.56, indicating liquid assets exceed short-term obligations. InvestingPro subscribers have access to over 30 additional financial metrics and insights about Perrigo, including detailed analysis of its market position and growth potential.

In other recent news, Perrigo Company plc has announced a 5% increase in its quarterly dividend, marking the 22nd consecutive year of dividend growth. The new dividend rate is set at $0.290 per share, amounting to $1.16 annually, and is scheduled for payment on March 25, 2025. Additionally, the company has settled a long-standing insurance dispute for $98 million, which will help offset legal expenses from securities litigation dating back to 2015-2017. In executive news, Perrigo appointed Abbie Lennox as the new Chief Scientific Officer, aiming to enhance its consumer-led innovation pipeline. Lennox, who previously worked at Bayer (OTC:BAYRY) Consumer Health, brings extensive experience in regulatory excellence and product life cycle management. Meanwhile, Piper Sandler downgraded Perrigo’s stock rating from Overweight to Neutral, citing concerns over the company’s infant formula segment and the slow ramp-up of its contraceptive product, Opill. The firm also lowered the price target to $27.00 from $34.00. Lastly, Katherine Doyle, an independent board member since 2020, will retire following the company’s annual general meeting in 2025, with no successor announced yet.

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