$US534 million payout for Allergan chief

Mr Pyott converted stock and options into $US534 million in cash on 17 March – the day the buyout was completed.
Of that, options netted him $497 million in cash, while he traded in 285,000 shares, including some newly vested, in exchange for $36.9 million.
Part of that sum came from his golden parachute, an $89 million change-in-control package comprising cash and shares.
The Actavis deal accelerated the vesting of all his stock awards, including those awarded in 2012 as a one-time bonus. Worth more than $9 billion back when Allergan’s market cap was $20 billion, they became considerably more valuable thanks to a months-long takeover battle with Valeant and, finally, Actavis’ white-knight swoop-in at the last moment.
That hefty take-home may be the reason Pyott recently declined to join the combined company’s board.
Allergan has dropped its lawsuit against Valeant and Pershing Square Managent that was filed in response to Pershing Square’s purchase of Allergan stock just prior to Valeant’s unsuccessful bid for Allergan last year.
The unsuccessful merger of Valeant and Allergan was backed by Pershing Square chief Mr William Ackman, who Allergan accused of insider trading. Allergan sought to prevent Pershing Square’s shares from being voted in a shareholder vote on the proposed Valeant takeover. However, the vote never took place because Allergan was bought by Actavis.
There were no fees as part of the settlent and none of the parties are admitting fault.

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