Richard Gonzalez, the outgoing CEO of AbbVie, has received a compensation package worth $25.7 million in 2023, marking his final full year as the company’s CEO. This news comes as Gonzalez prepares to step down at the end of June, with Chief Operating Officer Robert Michael set to take over on July 1.
Gonzalez’s tenure at AbbVie has been characterized by the remarkable success of the inflammatory disease drug Humira, which has propelled the company to new heights. Despite facing criticism for pricing strategies and patent barriers surrounding Humira, AbbVie has seen substantial growth under Gonzalez’s leadership.
In 2023, AbbVie achieved its highest closing stock price in history, reaching $181.20. Additionally, the company’s market cap has soared from $54 billion to its current $316 billion over the course of Gonzalez’s 12-year tenure.
While Humira’s sales declined by 35% to $14.4 billion last year, AbbVie’s follow-on treatments Skyrizi and Rinvoq experienced significant revenue growth, with sales totaling $11.8 billion in 2023. AbbVie projects that the combined revenue from these treatments will reach $27 billion by 2027.
AbbVie attributed Gonzalez’s $3.5 million bonus in 2023 to the senior executive team’s strategic efforts in navigating the challenges faced by the company, particularly in relation to the impact of Humira’s loss of exclusivity on financial results.
Gonzalez’s total pay of $25.7 million in 2023 represented a slight decline from his earnings in the previous year. His equity awards totaled $17.1 million, while his incentive plan compensation decreased to $3.5 million. However, his change in pension value and non-qualified deferred compensation rose to $1.3 million, indicating a shift in the composition of his overall compensation package.
As AbbVie prepares for a leadership transition, Gonzalez’s significant contributions to the company’s growth and strategic direction will undoubtedly leave a lasting impact on the biopharmaceutical industry.
