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Posted 26 March, 2021

Merck & Co., Inc. appointed Robert M. Davis as new CEO

NYSE:MRK appointed new Chief Executive Officer Robert M. Davis in a 8-K filed on 26 March, 2021.


  In addition, the Board unanimously elected Robert M. Davis, the Company's current Executive Vice President, Global Services and Chief Financial Officer, to serve as President of the Company, effective April 1, 2021, and as the Company's Chief Executive Officer and a member of the Board, effective July 1, 2021.  

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Overview of Merck & Co., Inc.
Health Care/Life Sciences • Pharmaceuticals
Merck & Co., Inc. is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products. The Animal Health segment discovers, develops, manufactures, and markets animal health products, such as pharmaceutical and vaccine products, for the prevention, treatment and control of disease in livestock, and companion animal species. The Other segment consists of sales for the non-reportable segments of healthcare services. The company was founded in 1891 and is headquartered in Kenilworth, NJ.
Market Cap
$314B
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Merck & Co., Inc. by TradingView
Relevant filing section
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. 


(c) On February 4, 2021, Merck & Co., Inc. (the "Company") announced that Kenneth C. Frazier, the Company's Chairman and Chief Executive Officer, will retire as Chief Executive Officer, effective June 30, 2021. After his retirement, Mr. Frazier will continue as Executive Chairman of the Company for a transition period to be determined by the Company's Board of Directors (the "Board").


In addition, the Board unanimously elected Robert M. Davis, the Company's current Executive Vice President, Global Services and Chief Financial Officer, to serve as President of the Company, effective April 1, 2021, and as the Company's Chief Executive Officer and a member of the Board, effective July 1, 2021.


In connection with the CEO transition between Mr. Frazier and Mr. Davis, the Compensation and Benefits Committee of the Board recommended, and on March 23, 2021, the Board approved, the compensation actions described below.


With respect to Mr. Frazier:


Annual Base Salary

$

Target Annual Incentive

%

Target Long-Term Incentive Grant Value

$(1)


Chairman and CEO

(Jan 1 to Jun 30, 2021)

$1,700,000

(No change)

150% (No change)


$10,750,000 


Executive Chairman

(July 1, 2021)

$1,250,000


100%


With respect to Mr. Davis:


Annual Base Salary

$ 

Target Annual Incentive

%

Target Long-Term Incentive Grant Value

$(1)


CFO (until Mar 31, 2021)

President (Apr 1 to Jun 30, 2021)

$1,148,046

(+3%)(2)

105%

(No change)
 $9,200,000(3) 


CEO (July 1, 2021)


$1,500,000
 150% 


(1) Issued as 70% Performance Share Units ("PSUs") and 30% stock options. 

 (2) Reflects annual salary increase approved by the Board's Compensation and Benefits Committee in January and effective March 29, 2021. 

 (3) The value reflects a blended rate reflecting 3 months at the CFO rate of $4,500,000 and 9 months at the new CEO rate of $10,750,000 upon his promotion to President. 


In addition, on March 23, 2021, the Board unanimously elected Caroline Litchfield to serve as Executive Vice President and Chief Financial Officer of the Company, effective April 1, 2021. Ms. Litchfield will have a base salary of $900,000. Her target annual incentive will be 100% of her base salary and her target long-term incentive grant value will be $2,200,000 (issued as 70% PSUs and 30% stock options).