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"We are expanding the stock retention guidelines, which we believe are nowamong the strongest in our industry, for the Executive Management Team(including the five highest-paid executives)," said Hans W. Becherer, Chairmanof the Compensation Committee of the Board of Directors.
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"Schering-Plough executive compensation policies tie a significantpercentage of compensation to performance. Further, a significant portion oftotal executive compensation is already paid in stock (rather than cash) toalign management with shareholders. The policy we are announcing todayfurther strengthens that alignment with shareholders, at a time when ourindustry and our company are under increasing challenge," said Becherer.
"The actions we are announcing today further strengthen our company in achallenging environment, as we continue with confidence to drive toward ourgoal of long-term high performance," said Fred Hassan, chairman and CEO.
Schering-Plough is an innovation-driven, science-centered global healthcare company. Through its own biopharmaceutical research and collaborationswith partners, Schering-Plough creates therapies that help save and improvelives around the world. The company applies its research-and-developmentplatform to human prescription and consumer products as well as to animalhealth products. Schering-Plough's vision is to "Earn Trust, Every Day" withthe doctors, patients, customers and other stakeholders served by itscolleagues around the world. The company is based in Kenilworth, N.J., andits Web site is www.schering-plough.com.Key elements of the policy are as follows: -- Going forward, the executives are required to hold shares acquired upon the exercise of stock options for two years (not including shares used to pay the exercise price and tax withholding on the exercise). -- Existing stock ownership guidelines continue in effect. Those guidelines require the CEO to hold eight times salary in stock and other senior executives (including the executive vice presidents) to hold four times salary in stock.
SOURCE Schering-Plough Corporation
