Amgen Chief Gets Boost in 2002 Salary

Amgen Inc. of Thousand Oaks disclosed Monday that Chief Executive Kevin W. Sharer received cash compensation of $2.78 million last year, a reward for successful product launches and the acquisition of rival Immunex Corp.

But Sharer’s salary was dwarfed by his $9.82-million gain on stock options he exercised during the year -- a windfall at least one shareholder wants to eliminate in the future, according to Amgen’s proxy.

Sharer’s salary rose $50,000 to $980,000 and he received a $1.8-million bonus, the maximum under Amgen’s compensation formula. Amgen said Sharer exceeded unspecified goals for revenue, earnings and drug research and development.

A high point of 2002 was the completion of a factory to produce Enbrel, the much-in-demand rheumatoid arthritis drug Amgen received with its $9.6-billion purchase of Immunex. Also during the year, Neulasta, a new drug for chemotherapy-related infections, posted surprisingly brisk sales.

In addition to his regular salary and bonus, Sharer was awarded $500,000 in deferred compensation that will vest over three years.

Sharer’s 2001 cash compensation totaled $1.78 million, down from $2.17 million in 2000.

The company disclosed in its proxy that it faces a shareholder resolution that would forbid future awards of stock options to Sharer and other senior executives. The resolution from an unidentified shareholder said the option awards are excessive. Amgen opposes the resolution, which will be voted on at the company’s annual meeting May 15.

Amgen’s shares fell $1.01 to $57.55 on Nasdaq. The stock has risen about 90% since mid-July.