Posted: 05/02/2025 07:57 am
As West Pharmaceutical Services, Inc. navigates through a period of scrutiny prompted by potential securities law violations, an exploration into its executive compensation over recent years offers insight into the leadership and financial priorities of the company. Based in Exton, PA, West Pharmaceutical Services is a global leader in injectable drug administration solutions. However, the company now faces significant shareholder and legal scrutiny following a report on February 12, 2025, that revealed a promising 4Q 2024 performance but issued a conservative 2025 forecast well below analyst expectations¹.
Examining the compensation of West's executives, particularly between 2019 and 2024, reveals notable variances in pay structures and total packages that reflect both industry standards and individual responsibilities. For instance, in 2020, President and CEO Eric M. Green received a total compensation of approximately $7.6 million, which included a significant amount tied to stock and option awards as well as substantial incentive plan compensation². This robust compensation potentially mirrors the demands of leadership stability amid market pressures and strategic shifts.
In contrast, Annette F. Favorite, the Senior Vice President and Chief Human Resources Officer, recorded a total compensation of approximately $1.25 million in 2024, heavily balanced with stock and option awards, emphasizing her role in maintaining company morale and operational stability during uncertain times³.
Notably different is the history of compensation for Bernard J. Birkett, the Chief Financial & Operations Officer. From 2019 to 2021, his compensation consistently showed a reliance on stock awards and leadership incentives, reaching over $3 million in 2021⁴⁵⁶. Such trends speak to West Pharmaceutical Services’ strategy of using equity-based incentives to reward and retain talent vital to its financial governance.
These compensation insights come as West Pharmaceutical’s stock price experiences fluctuations—currently trading at $210.26, substantially lower than its 52-week high of $372.79⁷. The price movement signifies a response to recent investigations by firms such as Levi & Korsinsky, probing the potential discrepancies between reported financial outcomes and forward-looking statements, which investors argue may have been misleading¹¹.
A key aspect of executive compensation at West Pharmaceutical, as shown, involves aligning long-term incentives with stock price performance, suggesting a direct influence of executive decisions on shareholder outcomes. Therefore, the ongoing legal scrutiny could have significant implications not only on investor confidence but also on future compensation models at West, which may pivot to more performance-oriented metrics amid market criticism and operational transparency drive¹⁷.
These investigations and compensation structures underscore the multifaceted challenges West Pharmaceutical Services faces amidst lofty expectations and market pressures, dictating a critical juncture in the company’s strategic and financial trajectory. The outcome of these investigations and their influence on stock performance and corporate governance will be closely watched by industry analysts and investors alike¹.
1. Levi & Korsinsky press release, February 24, 2025.
2. SEC filing: Compensation data of Eric M. Green, 2020.
3. SEC filing: Compensation data of Annette F. Favorite, 2024.
4. SEC filing: Compensation data of Bernard J. Birkett, 2019.
5. SEC filing: Compensation data of Bernard J. Birkett, 2020.
6. SEC filing: Compensation data of Bernard J. Birkett, 2021.
7. Current stock price and trading data, May 2, 2025.
11. Investigation notice by Levi & Korsinsky, April 30, 2025.
17. Current stock price analysis and strategic expectations, May 2, 2025.
