The beleaguered chief executive of biotech giant Amgen Inc. confronted an often testy group of shareholders Wednesday, his first annual meeting with investors since the company's fortunes took a hard turn last summer.
"Last year was awful. I deeply, deeply regret that," Kevin Sharer said, appearing calm and confident during an hourlong presentation to an audience of several hundred at the Four Seasons Hotel in Westlake Village.
He also sought to reassure investors. Sharer said the company was off to a good start this year and suggested that many of Amgen's woes should be viewed along with problems affecting all drug companies. "I'm not making any excuses . . . but things are pretty stormy out there right now."
Some shareholders appeared unconvinced and the meeting turned contentious when investors were invited to make public comments.
One suggested the company begin paying shareholders a dividend to make up for the stock's steep fall over the last year. Another said she was disgusted with Amgen's recent performance and was considering selling her shares. "You say you are looking out for the best interest of shareholders. I don't believe you are," she told Sharer.
Several questions focused on the chief executive's nearly $13.2-million compensation last year, which included a car and driver and personal use of the company's plane.
In all, his pay was nearly 29% less than his 2006 compensation.
Theodore Goldberg, a 73-year-old retired Los Angeles accountant, said he believed the board should consider changing Amgen's management in light of its poor financial performance and Sharer's compensation.
"The board has a fiduciary duty to protect stockholders," Goldberg said before receiving loud applause.
Sharer said he was prepared for the scrutiny. "This is a democracy and I anticipated hard questions," he said to one questioner. "I regret what has happened this past year, and I understand" your anger.
Sharer noted that his most recent annual compensation package was reduced from the year before and the value of his Amgen holdings fell as well. "I felt real economic pain."
He defended his and other senior executives' use of corporate planes and cars as a necessity for senior management.
Until last year, the Thousand Oaks biotech pioneer could do little wrong throughout its 25-year history.
Sharer has been Amgen's chief executive since 2000; he has been chairman of the board of directors since 2001.
