Henry McKinnell
Encyclopedia
Henry A. McKinnell, Jr. (born February 23, 1943) is the former chief executive officer
and former chairman of the board of directors
of Pfizer Inc. He is also a director of ExxonMobil
and Moody's
.
He was born in Victoria, British Columbia
, Canada
. He originally worked toward a degree in Chemistry but later changed his declared degree to Business. He earned his bachelors degree for business from the University of British Columbia
in 1965. Later, he earned his masters and doctorate in business administration (finance subfield) from Stanford Business School.
, but he instead chose to work at American Standard for three years (1969–1971). He later joined Pfizer
in early 1971. Over the course of the next 32 years, McKinnell climbed his way up several positions.
He was named CEO as of January 2001 and named chairman in April 2001. In 2003 he won the Woodrow Wilson Award for Corporate Citizenship. McKinnell was known as an aggressive and hard line advocate of trade sanctions against developing countries in disputes over patents and other intellectual property rights on medicines. In 2006, several Stanford alums asked that McKinnell be removed from an advisory board at the Stanford Business School, due to the aggressive use of litigation against the head of the Philippines regulatory agency.
Following falling share prices, McKinnell resigned the CEO position on July 28, 2006 amid dissatisfaction from the Board of Directors and declining investor confidence and was replaced by Jeff Kindler
on that day. He was scheduled to remain as chairman until February 2007 (http://www.bloomberg.com/apps/news?pid=20601087&sid=a44WF6OTh..Y&refer=home).
Pfizer was relatively conservative with regard to mega-mergers through stock-for-stock transactions through most of its history until McKinnell took the helm in 2001. Pfizer's per share price (adjusted for splits) went from about $50 to $30 from 1999 to 2006 during McKinnell's tenure. With roughly 7 billion shares outstanding, this reflects a loss in value of 140 billion dollars under McKinnell's leadership pursuing a strategy of growth via stock for stock acquisition.
It could be argued that some of the decline in Pfizer's market value during this time could be attributed to the overall decline in blue chip stocks from 1999-2001. However, many industry analysts criticized McKinnell for diluting shareholder value with these expensive stock-for-stock acquisitions that obviously paid a premium for the underlying value of the acquired company. Furthermore, internal contributions to the pipeline did not replace declining value nor did these M&A activities. However, McKinnell received record compensation which he staunchly defended against critics.
According to documents Pfizer
filed with the Securities and Exchange Commission, Mr. McKinnell received a base salary in 2005 of $2,270,500, and a bonus of $3,700,000. He also received $145,814 in other compensation (primarily tax payments made by Pfizer
on behalf of employees), and nearly $5.5 million in long-term incentive payouts. The value of his retirement package and deferred compensation will exceed $200,000,000.
Mr. McKinnell has, according to documents filed with the Federal Elections Commission, donated mainly to Republican Party
candidates. He has donated to George W. Bush
, John Thune
, Chuck Grassley
, and others.
According to the same FEC documents, Mr. McKinnell lives in Greenwich, Connecticut
.
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
and former chairman of the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of Pfizer Inc. He is also a director of ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
and Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
.
He was born in Victoria, British Columbia
Victoria, British Columbia
Victoria is the capital city of British Columbia, Canada and is located on the southern tip of Vancouver Island off Canada's Pacific coast. The city has a population of about 78,000 within the metropolitan area of Greater Victoria, which has a population of 360,063, the 15th most populous Canadian...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. He originally worked toward a degree in Chemistry but later changed his declared degree to Business. He earned his bachelors degree for business from the University of British Columbia
University of British Columbia
The University of British Columbia is a public research university. UBC’s two main campuses are situated in Vancouver and in Kelowna in the Okanagan Valley...
in 1965. Later, he earned his masters and doctorate in business administration (finance subfield) from Stanford Business School.
Career
His first job offer (ironically) was for PfizerPfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
, but he instead chose to work at American Standard for three years (1969–1971). He later joined Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
in early 1971. Over the course of the next 32 years, McKinnell climbed his way up several positions.
He was named CEO as of January 2001 and named chairman in April 2001. In 2003 he won the Woodrow Wilson Award for Corporate Citizenship. McKinnell was known as an aggressive and hard line advocate of trade sanctions against developing countries in disputes over patents and other intellectual property rights on medicines. In 2006, several Stanford alums asked that McKinnell be removed from an advisory board at the Stanford Business School, due to the aggressive use of litigation against the head of the Philippines regulatory agency.
Following falling share prices, McKinnell resigned the CEO position on July 28, 2006 amid dissatisfaction from the Board of Directors and declining investor confidence and was replaced by Jeff Kindler
Jeff Kindler
-Background:Jeffrey Kindler graduated summa cum laude from Tufts University in 1977 and magna cum laude from Harvard Law School in 1980. He subsequently clerked for Supreme Court Justice William J. Brennan Jr. and worked at the law firm Williams & Connolly in Washington, D.C...
on that day. He was scheduled to remain as chairman until February 2007 (http://www.bloomberg.com/apps/news?pid=20601087&sid=a44WF6OTh..Y&refer=home).
Pfizer was relatively conservative with regard to mega-mergers through stock-for-stock transactions through most of its history until McKinnell took the helm in 2001. Pfizer's per share price (adjusted for splits) went from about $50 to $30 from 1999 to 2006 during McKinnell's tenure. With roughly 7 billion shares outstanding, this reflects a loss in value of 140 billion dollars under McKinnell's leadership pursuing a strategy of growth via stock for stock acquisition.
It could be argued that some of the decline in Pfizer's market value during this time could be attributed to the overall decline in blue chip stocks from 1999-2001. However, many industry analysts criticized McKinnell for diluting shareholder value with these expensive stock-for-stock acquisitions that obviously paid a premium for the underlying value of the acquired company. Furthermore, internal contributions to the pipeline did not replace declining value nor did these M&A activities. However, McKinnell received record compensation which he staunchly defended against critics.
According to documents Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
filed with the Securities and Exchange Commission, Mr. McKinnell received a base salary in 2005 of $2,270,500, and a bonus of $3,700,000. He also received $145,814 in other compensation (primarily tax payments made by Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
on behalf of employees), and nearly $5.5 million in long-term incentive payouts. The value of his retirement package and deferred compensation will exceed $200,000,000.
Mr. McKinnell has, according to documents filed with the Federal Elections Commission, donated mainly to Republican Party
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
candidates. He has donated to George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
, John Thune
John Thune
John Randolph Thune is the junior U.S. Senator from South Dakota and a member of the Republican Party. He previously served as a U.S. Representative for .-Early Life, Education:...
, Chuck Grassley
Chuck Grassley
Charles Ernest "Chuck" Grassley is the senior United States Senator from Iowa . A member of Republican Party, he previously served in the served in the United States House of Representatives and the Iowa state legislature...
, and others.
According to the same FEC documents, Mr. McKinnell lives in Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
.