J&J, in Wake of Recalls, Trims Bonuses

NEW YORK ( TheStreet) -- Johnson & Johnson ( JNJ) employees won't be receiving full bonuses for 2010, in the wake of damage to the company's reputation and "mixed performance" during the year, the Wall Street Journal reports.

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WSJ reports that certain details of the announcement were delivered to employees via an email that said they would be paid 90% of the recommended bonus amount.

The impact would be felt by roughly half of J&J's 114,000 employees globally, WSJ said.

Over the last two years, prior to this negative bonus news, J&J gave eligible employees the full amount or more of their bonuses, according to the report.

The disappointing news is being delivered to employees as J&J tries to repair its image following the massive recalls of over-the-counter medicines such as Tylenol, and other products such as hip implants and contact lenses.

According WSJ, J&J suffered about $600 million in lost sales for the year.

Shares of J&J have inched up 0.3% to $62.29 in Wednesday morning trading, while related stocks trade in mixed territory. Merck ( MRK) has risen 0.6% to $34.07 and Pfizer ( PFE) has fallen 0.3% to $18.33.
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-- Written by Andrea Tse in New York.

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