Eli Lilly CEO David Ricks has claimed the top position among pharmaceutical executives with $29.2 million in total compensation for 2024, overtaking Johnson & Johnson's Joaquin Duato in a year marked by exceptional performance for the Indianapolis-based drugmaker.
Ricks' compensation represents a 10% increase from his 2023 pay, reflecting what the company described as a "whirlwind year" that saw Lilly clear manufacturing and supply backlogs to achieve blockbuster status for its weight loss drug Zepbound. Under his leadership, Lilly increased revenue by 32% to $45 billion in 2024, with non-GAAP earnings per share rising 106% to $12.99.
Top Executive Compensation Rankings
Pfizer's Albert Bourla secured the second position with $24.6 million, marking a 14% increase from 2023. Bourla's pay bump came as he led the company through a massive "cost realignment" program that trimmed $4 billion in savings and oversaw 14 regulatory approvals in oncology and other key programs.
Johnson & Johnson's Joaquin Duato, who previously held the top spot, fell to third place with compensation just under $24.6 million—a 14% decrease from 2023 despite exceeding the company's operational sales, adjusted operational earnings per share, and free cash flow goals.
The remaining top six positions were filled by Amgen's Robert Bradway ($24.4 million), Gilead's Daniel O'Day ($23.7 million), and Merck's Robert Davis ($23 million), all receiving compensation above $23 million.
Performance-Driven Compensation Structure
The majority of executive earnings came from stock options, with Ricks receiving $19.7 million in stock awards. Roche's Thomas Schinecker commanded the highest base salary at $3.7 million, while bonuses remained scarce among U.S. companies, with no reported bonuses for American pharmaceutical executives in 2024.
Ricks' exceptional year included multiple achievements beyond Zepbound's success. The company secured FDA approval for Alzheimer's disease monoclonal antibody Kisunla and obtained approval for Ebglyss in Crohn's disease. Lilly also reported positive data readouts for tirzepatide in heart failure and diabetes risk reduction studies.
Strategic Initiatives and Acquisitions
Under Ricks' leadership, Lilly executed the acquisition of immunology biotech Morphic Holdings and launched LillyDirect, a direct-to-consumer portal for accessing Lilly medicines. The company also developed new R&D facilities and manufacturing sites, positioning itself for continued growth.
Pfizer's Bourla focused on transforming the company's commercial operations while implementing cost-saving measures. The company has already set Bourla's 2025 compensation at $23.4 million, indicating continued confidence in his leadership.
Compensation Disparities and Golden Parachutes
Executive-to-employee pay ratios varied significantly across companies. Ricks' compensation was 243 times that of Lilly's median employee salary of $120,000, while Duato received 293 times the median J&J employee's $83,000 salary. Vertex Pharmaceuticals' Reshma Kewalramani had the lowest ratio at 88:1, reflecting the company's higher baseline employee compensation of $245,708.
Ricks also holds the largest golden parachute among pharmaceutical executives, with up to $131.4 million due upon departure depending on circumstances. Gilead's O'Day follows with a potential $80.6 million termination package.
Industry Context and Future Outlook
The pharmaceutical industry's executive compensation reflects the sector's performance and strategic challenges. Merck's Davis faces the significant challenge of replacing Keytruda, which generated $29 billion in sales in 2024 but faces patent expiration in 2028. The company initiated 20 Phase III clinical trials and completed acquisitions of Harpoon Therapeutics and Eyebiotech to address this challenge.
GSK's Emma Walmsley represents a notable compensation adjustment, with her 2024 pay of $13.7 million set to increase dramatically to $27.2 million in 2025—a 107% increase that would have placed her second on the 2024 list if achieved.
The compensation levels, while substantial, reflect the scale of operations these executives oversee. Ricks' $29.2 million compensation supported Lilly's $13.5 billion in revenue generation, demonstrating the relationship between executive pay and company performance in the pharmaceutical sector.
