Almost six months after Quintiles’ board of directors voted to give then-CEO Tom Pike $9.5 million in cash to stay with the company once its merger with IMS Health Holdings was complete, Pike is retiring.
He’ll forfeit the $9.5 million and stock valued at $7 million – both offered if he stayed through the end of 2017 in a diminished role in the new Quintiles IMS Holdings.
The merger, an all-stock deal valued at about $23 billion, closed Oct. 3.
Pike, who had led Durham-based Quintiles since 2012, took on the role of vice chairman and president of the combined company’s Research & Development Solutions business unit, and remained on the board of directors. Ari Bousbib, CEO of IMS, the healthcare information company based in Danbury, Conn., became chief executive and chairman of the combined company – a position that IMS had insisted upon if the merger was to go through, according to regulatory filings.
Pike’s last day was Friday, and he does not leave empty-handed. According to a filing with the Securities and Exchange Commission, Pike will receive an amount equal to two times his base salary on Dec. 2. In June, Pike’s annual salary was $1.2 million. Pike also will receive his 2016 cash bonus, the projected cost of the continuation of his health coverage for him and eligible dependents and a $1 million cash payment. In addition, his 60,524 shares of unvested restricted stock will vest immediately. However, Pike will forfeit the 86,356 unvested shares he received in connection to the closing of the merger.
Quintiles shares closed at $74.03 Friday.
According to the SEC filing, Pike’s retirement was “a personal decision and was not due to any disagreement with the company on any matter relating to the company’s operations, policies or practices.”
Pike will be replaced as president of the R&D unit by W. Richard Staub III, 54, who came to Quintiles in 2013 with the acquisition of Novella Clinical, where he was CEO.
According to the SEC filing, the management transition “had always been anticipated and is part of a planned succession,” but was “accelerated by rapid implementation of the company’s strategic and operational changes.”
In a statement released by Quintiles, Pike said, “I have worked with Richard extensively in the past few years and am highly confident in his ability to drive R&D Solutions forward.”
Quintiles IMS Holdings will have dual headquarters in Durham and Connecticut, according to company officials.