A Resonsible Board? Bristol-Myers Squibb (BMY) CEO Leaves With Only A Small Fortune

At last one company doesn't reward a CEO for poor stock performance by giving away a fortune upon his departure.  According to Reuters (via Yahoo), departing Bristol-Myers Squibb CEO Peter Dolan may get around $10 million as his exit package.  Even though it took a federal investigation to get rid of him the board of this company at least behaved responsibly.

I own a small (1/4 position) in BMY.  This news story made me want to take another look at my position.  I always believe that all partial positions should always be up for an increase or elimination after any news event.   At $24.36 has a big dividend yield of 4.6%.  According to First Call earning estimates, the 2007 p/e is a steep 20.0 and 2006 should come in at 24.00.  Further responsible action by the board may put the board of this former dividend aristocrat at risk.  I think I'll keep my small position and wait for the dividend cut (and cause a pullback) or some real corporate restructuring to make me think the company will become something other than a low growth cash cow. 

I'll hold BMY for now, and maybe even lighten up further.  But I will remain ready to buy on a big dip or positive restructuring news.

Bristol-Myers like so many corporations now has an extensive website dedicated to sustainability.

Disclosure:  I own BMY.  I also own other Big Pharma companies Pfizer (PFE),  and Merck (MRK).

Disclaimer:  Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.