Cell Therapeutics Dangles New Bonuses to Execs for Pixantrone Approval, Boosting Stock
Cell Therapeutics has survived a near-death experience this year, and now it is dishing out a new batch of potentially rich rewards for management to stick around at least two more years.
The Seattle-based biotech company (NASDAQ: CTIC) said today in a regulatory filing that the board’s compensation committee has approved a new series of bonuses for the company’s top five executives, and six non-employee directors. The bonuses will come in the form of common stock if Cell Therapeutics reaches any of eight different goals the company hopes to achieve between now and December 31, 2011, or if the company is sold.
You pretty much need a Ph.D in modern executive compensation practices to decode how much money the Cell Therapeutics shareholders stand to shell out to CEO James Bianco; his brother and CFO Lou Bianco; Dan Eramian, the company’s executive vice president of corporate communications; Craig Philips, the president; and Jack Singer, the chief medical officer. But the chart offered in today’s 8-k filing offers some interesting insights nonetheless about what the company considers important.
Here are the eight key goals being set up for Cell Therapeutics’ management team.
1. European Union regulators approve paclitaxel poliglumex (Opaxio) for cancer.
2. FDA approval of paclitaxel poliglumex.
3. Total sales of $50 million in a fiscal year.
4. Total sales of $100 million in a fiscal year.
5. FDA approval of pixantrone, the treatment for non-Hodgkin’s lymphoma.
6. Reaching cash-flow break-even in the fourth quarter of the 2010 fiscal year.
7. Reaching the earnings goal of a nickel per share.
8. Boosting the company’s stock price to $2.94.
If Cell Therapeutics reaches one of these goals, it will … Next Page »