Instead of getting a golden parachute, former Quintiles CEO Tom Pike has decided to settle for a silver one.

Pike is walking away from millions of dollars in stock and bonuses as he retires “effective immediately” from QuintilesIMS.

The former Quintiles leader, who stepped aside as CEO as part of a $17 billion merger with IMS, could have made more than $17 million if he had stayed with the life science giant through 2017.

Pike was not available for comment, a QuintilesIMS spokesperson told WRAL Tech Wire.

The company also said it would offer no additional comment beyond information included in an SEC filing.

In an SEC filing issued separately from a public announcement about Pike’s retirement, the recently merged QuintilesIMS said Pike “informed the Company of his retirement as an officer, employee and member of the Board” on Tuesday. The announcement came Wednesday along with news about other managerial shifts.

QuintilesIMS pointed out in the filing that “Mr. Pike’s retirement was a personal decision and was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”

His departure takes effect on Friday. Pike joined Quintiles as CEO in 2012, worked with retired chair and co-founder Dennis Gillings to take Quintiles back into the stock market in 2013, and then negotiated the merger with IMS. As part of that deal, he was not named CEO but did keep a board seat and a high-profile job.

A costly exit

Since Pike decided to step down, he and the company negotiated a new “Executive Employment Agreement” that will prove quite costly.

For example:

“the 86,356 unvested shares of restricted stock that was awarded to Mr. Pike on September 30, 2016 in connection with the closing of the merger between Quintiles Transnational Holdings Inc. and IMS Health Holdings, Inc. shall be forfeited upon Mr. Pike’s retirement.”

With Quintiles shares trading close to $80, the forfeiture will cost Pike some $7 million.

Other inducements for Pike to stay through 2017 had included:

  • Five $600,000 cash payments ($3 million)
  • $1,875,000 “Retention Award”
  • $4,609,000 “Additional Payment”

Not that he’s walking away penniless.

The filing says Pike will receive:

“(a) an amount equal to two times the sum of (i) his base salary in effect on December 2, 2016, plus (ii) his 2016 target annual cash bonus;

“(b) the projected cost of the continuation of group health insurance coverage for Mr. Pike and his eligible dependents pursuant to COBRA if Mr. Pike is enrolled in group health insurance coverage offered by the Company;

“(c) a $1 million cash payment.”

He also will hold on to 60.524 other shares. Those “shall vest immediately,” QuintilesIMS said.

Pike also can’t go job hunting in the life science business field, either.

“Under the terms of the Employment Agreement, Mr. Pike is subject to noncompetition and nonsolicitation covenants for a period of 36 months following the termination of his employment,” the filing reads.

“Mr. Pike has also agreed that for six months following his employment, he will only sell shares of the Company’s stock in compliance with Rule 144 of the Securities Act of 1933, as applicable, or elect to establish a trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.”

Read the filing online at:

https://www.sec.gov/Archives/edgar/data/1478242/000119312516780210/d299136d8k.htm