Why did Mylan Pharmaceuticals double the list price of the EpiPen, which delivers an emergency shot of anti-allergy medication, bringing the cost to $608 for a two-dose package and the total increase since 2007 to nearly 550 percent? Because its board decided to dramatically boost the pay of its top executives -- but only if they more than doubled the company's earnings per share. Pesto! CEO Heather BreschBresch earned $18.9 million last year, up from $9 million in 2013.
It’s amazing how much corporate performance can improve when share prices are linked to wildly-excessive executive pay. And amazing how much consumers can be forced to cough up when such pay agreements occur in an industry where competition is inadequate.
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