Abbie Lennox
PERRIGO CoAbout Abbie Lennox
Executive Vice President and Chief Scientific Officer at Perrigo (PRGO) since January 2025; age 44. Previously Executive Committee Member and Chief Trust & Science Officer at Bayer (2019–2024), leading regulatory, medical affairs, safety and quality; earlier held regulatory affairs leadership roles at Reckitt Benckiser driving pipeline delivery across health and wellness brands . Company performance context for 2024 (pre‑tenure): net sales $4,373.4M vs $4,655.6M in 2023 (−6.1%); operating income $112.9M vs $151.9M (−25.7%); adjusted operating income increased $35M to ~$0.6B and adjusted operating margin expanded 160 bps to 13.9%; 2022–2024 rTSR PSUs earned 0% vs S&P 500, indicating underperformance on relative TSR . Perrigo announced Abbie’s appointment and expanded Scientific Office on Jan 6, 2025 (press release) and disclosed her role in filings .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bayer | Executive Committee Member; Chief Trust & Science Officer | 2019–2024 | Led regulatory, medical affairs, safety and quality teams |
| Reckitt Benckiser | Regulatory Affairs Leadership | Not disclosed | Advanced regulatory approach to pipeline delivery across multiple health & wellness brands |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed in PRGO filings | — | — | No public company board roles disclosed in PRGO 10‑K/DEF 14A biographies |
Fixed Compensation
- Executive stock ownership guidelines: CEO 6x salary; Executive Vice President 3x salary; Senior Vice President (if Section 16) 2x salary. Until target levels are attained, executives must retain at least 50% of net shares from vesting/exercise; unearned PSUs and unexercised options do not count toward compliance .
- Anti‑hedging/anti‑pledging: executives and directors prohibited from pledging PRGO securities, short sales, derivatives, and monetization/hedging transactions .
- Perquisites and tax gross‑ups: program avoids significant perquisites and does not provide excise tax gross‑ups on change‑in‑control payments .
| Guideline | Multiple of Base Salary | Key Retention Requirements |
|---|---|---|
| CEO | 6x | Must retain ≥50% of net shares until compliant; no pledging/hedging |
| Executive Vice President (e.g., CSO) | 3x | Same as above |
| Senior Vice President (Section 16) | 2x | Same as above |
Performance Compensation
Long‑term and annual incentives directly tie pay to operational and market outcomes. The 2024 AIP (applies to executives; Lennox joined in 2025) was based entirely on Total Perrigo metrics and included a one‑time RSU component to increase retention.
| 2024 AIP Metric | Target | Actual | Payout (% of Target) | Weighting | Notes |
|---|---|---|---|---|---|
| AIP Net Sales ($M) | 4,654.6 | 4,345.9 | 66.8% | 20% | Currency/deal adjusted; threshold 90%/max 110% |
| AIP Operating Income ($M) | 626.7 | 579.5 | 81.1% | 40% | Currency/deal adjusted; threshold 80%/max 120% |
| AIP Gross Margin (%) | 38.9% | 38.5% | 89.5% | 20% | Threshold ±150 bps around target |
| AIP Operating Cash Flow ($M) | 341.2 | 306.8 | 0% | 20% | Threshold 90%/max 120% |
- 2024 AIP payment design change (Project Energize): one‑third cash (Mar 2025); two‑thirds plus 10% premium issued as two‑year service‑vesting RSUs (50% Mar 2026; 50% Mar 2027) .
- LTIP mix for executives (2024 grants): 50% PSUs tied to three‑year cumulative currency‑neutral Adjusted Operating Income (PSU OI); 20% PSUs tied to three‑year Relative TSR vs S&P 500; 30% service RSUs vesting over three years. 2022–2024 rTSR PSUs paid 0%; PSU OI paid 118% of target over 2022–2024 .
- 2025 LTIP change: PSU OI replaced with PSUs based on Free Cash Flow Return on Net Sales (FCF/NS) across 2025–2027, reflecting shareholder feedback to add a return metric and avoid duplicate measures across AIP/LTIP .
| LTIP Component | Metric | Performance Window | Earnout Range | Key Design Details |
|---|---|---|---|---|
| PSUs (50%) | 3‑yr cumulative Adjusted Operating Income (2024 design) | 3 years | 0–200% | Currency‑neutral PSU OI goals; 2022–2024 paid 118% |
| PSUs (20%) | Relative TSR vs S&P 500 | 3 years | 0–200% | 30th/55th/80th percentile = 0%/100%/200%; if absolute TSR negative, cap at 100% |
| RSUs (30%) | Service‑based | 3 years | n/a | Annual tranches; standard time‑vesting |
| PSUs (2025+) | FCF/NS | 2025–2027 | 0–200% (avg of annual results) | Return metric added based on shareholder input |
Equity Ownership & Alignment
- Beneficial ownership specifics for Lennox were not disclosed in the 2025 proxy’s March 3, 2025 table; executives are subject to ownership multiples and sale‑restriction retention until compliant .
- Anti‑hedging/anti‑pledging policy reduces alignment risk and potential forced selling; directors and executives prohibited from margin accounts, derivatives, short positions, or pledging PRGO securities .
- 2024 AIP RSU design defers a material portion of bonus into equity vesting through 2027, increasing alignment and mitigating near‑term selling pressure .
Employment Terms
- Change‑in‑Control (CIC) (U.S. policy for NEOs other than CEO; broadly applicable to senior executives): upon qualifying termination within 2 years post‑CIC, lump sum of 2x base salary + target bonus, plus prorated bonus and up to 24 months of health benefits (conditions apply). No single‑trigger cash severance; CIC equity treatment subject to plan terms; company does not provide excise tax gross‑ups .
- Clawback: adopted in Aug 2023 consistent with SEC/NYSE; requires recovery of certain incentive compensation after a restatement due to misconduct (fraud, knowing illegal conduct), and clawback language embedded in AIP, LTIP and non‑qualified deferred compensation policies .
| Provision | Trigger | Benefit/Recovery | Notes |
|---|---|---|---|
| CIC severance (U.S. execs) | Qualifying termination within 2 years of CIC | 2x salary + target bonus; prorated bonus; health benefits | No single‑trigger cash severance; plan governs equity |
| Clawback | Financial restatement due to misconduct | Recovery of incentive comp | Adopted Aug 2023; SEC/NYSE compliant |
| Anti‑hedging/pledging | Ongoing | Prohibited transactions | No pledging; no derivatives/shorts/margin |
Investment Implications
- Strategic lever: As CSO, Lennox is positioned to fortify quality, compliance and innovation that underpin infant formula remediation and the planned ~$240M investment in the formula network (enhanced R&D capabilities), a key cash‑return driver in the Three‑S plan to stabilize/streamline/strengthen the portfolio .
- Pay‑for‑performance alignment: Strong governance (no excise tax gross‑ups; anti‑pledging; robust clawbacks) and 2025 migration to FCF/NS PSUs increase cash conversion accountability—potentially favorable for equity holders if execution improves .
- Near‑term equity supply dynamics: 2024 AIP RSU deferral into 2026–2027 increases executive holdings and defers liquidity, reducing immediate insider selling pressure; rTSR PSU zero payout (2022–2024) highlights historical share price underperformance versus S&P 500 peers, raising the stakes for innovation and execution during Lennox’s tenure .
- Shareholder support: Say‑on‑Pay approval exceeded 97% in 2024, indicating broad investor endorsement of compensation design, despite TSR challenges; FW Cook‑supported peer benchmarking with consumer health comparators (e.g., Haleon, Kenvue) suggests market‑competitive structures without pay inflation red flags .
Note: Insider Form 4 transaction data for Abbie Lennox could not be retrieved in this session; governance policies above are drawn from PRGO’s DEF 14A. Appointment and background are confirmed in PRGO’s 10‑K and proxy materials ; strategic role highlighted at Investor Day .