WASHINGTON (dpa-AFX) - Forest Laboratories Inc.'s (FRX) CEO Howard Solomon Monday sent a letter to activist investor Carl Icahn, who is engaged in a proxy battle against the management of the drug maker.
Last week, Icahn, in a communique to Solomon, accused the CEO of having started a pattern of selling Forest stock at 'prices substantially higher than today's price'.
Nevertheless, Solomon today replied that he sold Forest stock for asset diversification and estate planning as well as to support various charitable causes. He also added that 87 percent of the sales occurred over a three and one-half year period at 'significantly lower prices'.
Icahn had also complained of Solomon receiving in excess of $60 million in compensation, even when the company's share price had lost 50 percent.
In response to it, Solomon said 'Our executive compensation program is designed to align executive compensation with our shareholders' interests. As you know, aside from your votes, over 80 percent of our shareholders voting supported the Company's compensation plan at last year's annual meeting.'
Icahn had also questioned about the succession plans of Forest, and alleged that Solomon promoted his son, whose only other experience involves producing movies.
Responding to it, Solomon said, 'Our succession planning is being led by independent directors, who have directly engaged Spencer Stuart to assist with, among other things, the consideration of both our deep bench of internal candidates and external candidates. I am confident that the Forest Board is fully capable of making responsible and objective succession planning decisions.'
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