Pharmaceutical Executive Compensation: A Deep Dive into Industry Trends

In a comprehensive analysis of executive compensation in the pharmaceutical industry, recent data reveals significant disparities in pay packages, golden parachutes, and CEO-to-employee pay ratios among top companies. This article examines the latest trends in executive remuneration and their implications for the sector.

Top Earners and Pay Disparities

Eli Lilly's CEO David Ricks emerged as the highest-paid pharmaceutical executive in 2024, with a total compensation of $29.2 million. This figure surpassed Johnson & Johnson's Joaquin Duato, who received $24.6 million, nearly $5 million less than Ricks. The stark contrast in executive pay is further highlighted when compared to the median earnings of U.S. workers, which stood at $62,088 annually in early 2025, according to the Bureau of Labor Statistics.

The disparity between executive and employee compensation is particularly evident in the CEO-to-employee pay ratios. Johnson & Johnson's Duato topped this list with a ratio of 293:1, followed closely by Pfizer's Albert Bourla at 269:1 and Eli Lilly's Ricks at 243:1. At the other end of the spectrum, Vertex Pharmaceuticals' CEO Reshma Kewalramani had a comparatively modest ratio of 88:1, reflecting the company's high median employee salary of $245,708.

Golden Parachutes and Departure Packages

The analysis also revealed substantial potential payouts for executives upon departure from their companies. Eli Lilly's David Ricks leads in this category as well, with a golden parachute worth up to $131.4 million, depending on the circumstances of his departure. Gilead Sciences' Daniel O'Day follows with a potential payout of $80.6 million.

These termination payments can be triggered by various events, including dismissal with or without cause, retirement, or in the event of a merger or acquisition. The largest payouts are typically associated with termination and replacement scenarios, where a CEO is let go and succeeded by a new executive.

Gender Representation and Pay Equity

The study highlighted the underrepresentation of women in top pharmaceutical executive positions. Among the CEOs of the top 20 pharmaceutical companies by market capitalization, only two are women: Vertex's Reshma Kewalramani and GSK's Emma Walmsley.

Notably, GSK's board recently approved a significant pay increase for Walmsley, potentially raising her compensation from $13.3 million in 2024 to $27.2 million in 2025, contingent on meeting specific performance milestones. This 104% increase could signal a shift towards greater pay equity at the highest levels of pharmaceutical leadership.