Pershing Square Activist Presentation Deck
Allergan's Poorly Designed Executive
Compensation Program
► Based on ISS executive compensation analysis, only 13% of David
Pyott's total compensation in 2013 was tied to performance
■ ISS recently cautioned that the CEO's level of long-term incentive
compensation was high relative to peers and was not conditioned on
specific performance goals
By contrast, 68% of Valeant CEO Michael Pearson's total compensation
in 2013 was performance-based incentive pay
► In 2013, David Pyott received total compensation of $14.1 million while
delivering 1-year TSR of 21.3%, in a year in which the S&P 500 TSR
was 32.4%
■ The median total compensation received by CEO's in Allergan's proxy
peer group was $14.5 million while delivering 1-year TSR of 65.8%
▸ By contrast, Michael Pearson received total compensation of $7.0
million while delivering 1-year TSR of 96.4%, nearly three times the TSR
of the S&P 500
Source: 2014 ISS reports of Allergan and its peer group as defined by the company in its proxy statement dated March 26, 2014.View entire presentation