By Peter Loftus
Johnson & Johnson (JNJ) Chairman William Weldon's annual base salary was reduced by nearly half to $1 million after he stepped down as chief executive last month, the company said Monday.
Weldon's previous annual base salary was set at $1.97 million for 2012, for his roles as both chairman and CEO, but with the expectation that J&J's board would consider the appropriate compensation for Weldon in his role as chairman only.
The decrease reflects that Weldon is no longer CEO, said spokesman Al Wasilewski.
On April 26, Alex Gorsky succeeded Weldon as CEO. Weldon is continuing as chairman and will remain an employee of the company, J&J said in a quarterly report filed with the Securities and Exchange Commission Monday.
J&J said in a previous SEC filing that in his role as chairman, Weldon will work closely with Gorsky to ensure a seamless leadership transition. During this time, all day-to-day management and operational responsibilities are being transferred to Gorsky.
Weldon will remain an employee but not a member of the J&J executive committee, which is the principal management group responsible for strategic operations and allocations of the resources of the company.
Weldon's main duties as chairman will include working with the board of directors, facilitating communication between the board and management, assisting Gorsky in business planning and strategy, representing the company before governmental and other organizations, and serving as chairman of the board's finance committee.
-By Peter Loftus, Dow Jones Newswires; +1-215-982-5581; firstname.lastname@example.org