Ties to board members aided Amgen’s CEO
Friends in high places
As is the case at many companies, the chief executive at Amgen has personal and business connections to members of the board of directors that is supposed to oversee him and set his pay.
●Four of six members of the board’s compensation committee had ties to chief executive Kevin W. Sharer before joining the board.
●Two board members, former Northrop Grumman chairman Ronald D. Sugar and former Wellpoint chairman Leonard D. Schaeffer, owe their board seats to Sharer, who proposed them for the positions, according to a company source and documents. Those seats pay about $350,000 annually.
●Board compensation committee member Frank C. Herringer, chair of Transamerica, served with Sharer as a director of Unocal for several years.
●Board compensation committee member Frederick W. Gluck served at McKinsey, the international management consulting firm, when Sharer also worked at the firm.
●A fifth board compensation commttee member, retired Adm. J. Paul Reason, is, like Sharer, a graduate of the Naval Academy and is active in Navy charities. Reason has been chairman of the board of directors for the United States Navy Memorial Foundation. Sharer has been a member of the board of directors of the Naval Academy’s Alumni Association and Foundation.
About the series
Read the other parts of the Breakaway Wealth series at washingtonpost.com/business.