Questcor CEO's Daughter Granted Huge Pay Raise
Questcor Pharmaceuticals (QCOR) CEO Don Bailey dotes on his daughter -- with A LOT of shareholder cash.
As reported this morning by my colleague Herb Greenberg in his "Reality Check" newsletter (subscription required), Kirsten Fereday, a Questcor employee who also happens to be Bailey's daughter, received a huge salary bump in in 2013, according to the compensation portion of its yet-to-be-filed proxy two days ago in an amended 10-K.
According to the filing:
Kirsten Fereday, the daughter of Don M. Bailey, our Chief Executive Officer, was employed by us during 2013 as our Senior Director, Business Analytics and Evaluation, and received total cash and equity compensation for the year ended December 31, 2013 equal to approximately $1,035,246 in cash compensation and $200,000 in restricted stock grants (value based on intrinsic value method). Ms. Fereday's employment was approved in accordance with the Related Party Transaction Policy and our Chief Executive Officer is not involved in the determination of Ms. Fereday's compensation. [Emphasis added.]
Compare that to the year earlier:
Kirsten Fereday, the daughter of Don M. Bailey, our Chief Executive Officer, was employed by us during 2012 as our Director, Business Analytics and Evaluation, andreceived total cash and equity compensation for the year ended December 31, 2012 equal to approximately $319,474 in cash compensation, $102,415 in option grants (value based on Black-Scholes valuation), and $180,318 in restricted stock grants... [Emphasis added.]
In his Reality Check posting, Greenberg notes:
But given the timing of the balloon payment months before the company's announced sale to Mallinckrodt (MNK - Get Report), the sheer size of the increase and the related-party nature of the transaction (albeit disclosed), you can't help but take notice. Just another small piece of what has become quite the jigsaw puzzle.
Greenberg reached out to Questcor for comment but had not yet received a response.