Daiichi Sankyo Cuts Executives’ Pay After $500 Million Ranbaxy Settlement

Bloomberg

Daiichi Sankyo Co. cut pay for executives and directors after slashing its profit forecast because of a $500 million provision to settle a legal dispute at its Ranbaxy Laboratories Ltd. unit in India.

Japan’s third-biggest drugmaker by market value expects net income to slump 63 percent to 26 billion yen ($334 million) in the year ending March 2012, from 70.1 billion yen a year earlier, it said in a statement today. Profit will miss the 50 billion yen forecast made in July because of a 37.5 billion yen charge linked to Ranbaxy’s settlement with the U.S. Justice Department, it said.