Can Scientists Be Effective CEOs?
Over the past 30 years or so, the vast majority of chief executives in the drug business have made their way to the top via the sales and marketing departments. Few senior executives have toiled in a research laboratory or for that matter, know the difference between NMR and protein purification. However, things may be changing in the industry. A quick perusal of the CEOs of the top 20 pharmaceutical and biotechnology companies (see below) reveals that 11 of 20 have degrees in engineering (4), medicine (2) and science (5). The remaining 9 have degrees in business and finance (3), sales and marketing (4) or law (2). Several of the scientists (2), engineers (3) and one physician also earned MBA degrees.
Conventional wisdom suggests that scientists usually do not make good CEOs (they are not formally trained in business). However, doesn’t the lack of scientific sensibility put non-scientist CEOs at a disadvantage when it comes to making strategic and operational decisions about R &D? One would think so….!!!!
A careful examination of my top 20 list suggests that some of the most successful companies are run by scientist CEOs, e.g. Genentech, Gilead, Novartis and Lilly. Expect to see more scientist CEOs at large biotechnology and pharmaceutical companies in the future–R&D have become way too complex for non-scientist to truly understand its nuances and potential pitfalls. Plus, we scientists know that obtaining a MBA degree is a “piece of cake” as compared with the PhD degree! Hmmm, I wonder what business people think about PhDs?
|
Company |
Name |
Background |
2006 Total Compensation |
|
Abbott |
Miles White |
Mechanical Engineering and Business (MBA) |
$26,915,358 |
|
Amgen |
Kevin Sharer |
Aeronautical Engineering and Business (MBA) |
$34,390,000 |
|
AstraZeneca |
David Brennan |
Sales and Marketing |
$4,226,000 |
|
Biogen/IDEC |
James Mullen |
Chemical Engineering |
$1,450,000 |
|
Bristol-Myers Squibb |
Jim Cornelius |
Business (MBA) and Finance |
$1,472,879 |
|
Eli Lilly |
John Lechleiter |
Chemistry (PhD) |
Not available (newly appointed) |
|
Genentech |
Arthur D. Levinson |
Molecular Biology (PhD) |
$17,124,025 |
|
Genzyme |
Henri A. Termeer |
Finance and Business (MBA) |
$36,380,000 |
|
Gilead |
John C. Martinis |
Organic Chemistry (PhD), Chemical Engineering and Business (MBA) |
$22,860,000 |
|
GlaxoSmithKline |
JP Garnier |
Pharmacology (PhD) and Business (MBA) |
$5,413,000 |
|
Johnson & Johnson |
William C. Weldon |
Sales and Marketing |
$28,557,749 |
|
MedImmune |
David Mott |
Banking and Investment |
$11,411,897 |
|
Merck |
Richard T. Clark |
Business and Marketing (MBA) |
$10,236,740 |
|
Millennium |
Deborah Dunsire |
Physician (MD) |
$3,874,464 |
|
Novartis |
Daniel Vasella |
Physician (MD) and Business (MBA) |
3,199,505 CHF |
|
Pfizer |
Jeffery Kindler |
Lawyer |
$9,799,233 |
|
Roche |
Severin Schwan |
Lawyer and Finance |
Not available (newly appointed) |
|
Sanofi Aventis |
Gerard Le Fur, |
Pharmaceutical Sciences (PhD) |
Not available (newly appointed) |
|
Schering Plough |
Fred Hassan |
Chemical Engineering and Business (MBA) |
$5,790,000 |
|
Wyeth |
Bernard Poussot |
Business and Finance |
Not available (newly appointed) |
Until next time….
Good Luck and Good Job Hunting!!!!!!!!
