Vertex CEO Kewalramani's Compensation Rises to $21.5M as Company Reports Strong Performance

Vertex Pharmaceuticals has increased CEO Reshma Kewalramani's compensation package to $21.5 million for the year 2024, representing a 4% increase from the previous year. This raise comes on the heels of a solid financial performance, with the company reporting 12% growth in its top line.

Kewalramani's Compensation Package

Dr. Kewalramani's 2024 compensation package includes:

• A base salary of $1.5 million
• A performance bonus of $4.9 million, up from $4 million in 2023
• Equity awards valued at $15 million

This pay increase solidifies Kewalramani's position among the highest-paid executives in the biopharmaceutical industry. Notably, she remains the only female CEO among companies with a market capitalization of at least $100 billion in this sector.

Vertex's Performance and Achievements

Vertex attributed the pay increase to several key accomplishments under Kewalramani's leadership:

• Overachievement of financial goals, including significant growth in cystic fibrosis (CF) net product revenues
• Strengthening of the company's balance sheet
• Continued delivery of strong operating margins
• Successful $4.5 billion acquisition of Alpine Immune Sciences, expanding Vertex's presence in immunology and inflammation
• New drug approvals for CF treatment Alyftrek and non-opioid pain reliever Journavx

The company's financial performance was particularly strong, with total revenue reaching just over $11 billion for the 2024 fiscal year.

Executive Compensation Trends in the Industry

Kewalramani's compensation package places her among the top earners in the pharmaceutical industry. Other notable CEO compensations for 2024 include:

• Eli Lilly's David Ricks: $29.2 million
• Pfizer's Albert Bourla: $24.6 million
• Johnson & Johnson's Joaquin Duato: $24.3 million
• Gilead Sciences' Daniel O'Day: $23.7 million

In contrast, some industry peers received lower compensation packages:

• Bristol Myers Squibb's Chris Boerner: $18.8 million
• AbbVie's Rob Michael: $18.5 million

Vertex's other top executives also saw increases in their compensation for 2024:

• Stuart Arbuckle, Chief Operating Officer: $9.4 million
• Charles Wagner, Chief Financial Officer: $8 million
• David Altshuler, Chief Scientific Officer: $7.6 million
• Nia Tatsis, Chief Regulatory and Quality Officer: $7.3 million

The compensation increases across Vertex's leadership team reflect the company's strong performance and strategic positioning in the competitive pharmaceutical landscape.