Compensation Clawbacks in the Life Sciences Context : The Latest on Resolving Compliance Dilemmas, Implementation Challenges and Conflicts with International Employment Law

May 9, 2024 3:00pm

Christina O. Hud
Senior Compliance Counsel, Global Investigations
Pfizer, Inc.

Roger O’Sullivan
General Counsel, Corporate Secretary & Chief Compliance Officer
CDx Diagnostics

How should life sciences companies be structuring their employee compensation packages accordingly and better position themselves in the event of a DOJ inquiry or investigation?

  • Compensation arrangements for positions that pose higher risks of compliance issues:
    • Senior executives
    • Sales professionals who interact with HCPs
    • Sales professionals who frequently interact with HCPs who are government officials
  • Multi-jurisdictional, international clawback implications:
    • U.S. jurisdictions: Navigating different definitions and interpretations of what kinds of compensation constitute “wages.”
    • Resolving conflicts between U.S. and foreign employment law
  • Implementing compensation structures that reward and incentivize compliant behavior
  • Integrating compliance efforts into company functions
    • Compensation committees
    • Employee performance evaluations
    • Who will be administering the protocols?