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Pharmaceutical Product Development Inc. Reports Operating Results (10-K/A)

August 23, 2010 | About:
10qk

10qk

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Pharmaceutical Product Development Inc. (PPDI) filed Amended Annual Report for the period ended 2009-12-31.

Pharmaceutical Product Development Inc. has a market cap of $2.84 billion; its shares were traded at around $23.93 with a P/E ratio of 25.46 and P/S ratio of 2. The dividend yield of Pharmaceutical Product Development Inc. stocks is 2.51%. Pharmaceutical Product Development Inc. had an annual average earning growth of 17.1% over the past 10 years. GuruFocus rated Pharmaceutical Product Development Inc. the business predictability rank of 3.5-star.PPDI is in the portfolios of Third Avenue Management, John Hussman of Hussman Economtrics Advisors, Inc., Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Bruce Kovner of Caxton Associates, Richard Aster Jr of Meridian Fund, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, Jean-Marie Eveillard of First Eagle Investment Management, LLC.

Highlight of Business Operations:

Directors who are employees of the Company receive no additional compensation for serving on the Board of Directors. In 2009, we paid non-employee directors an annual retainer of $50,000 in quarterly installments after each regularly scheduled meeting of directors. Effective January 2010, the Board of Directors reduced its annual cash retainer from $50,000 to $36,000 in view of the challenging market and business conditions. We also pay each non-employee director $1,000 for each meeting of the Board of Directors attended in person and $1,000 for attendance at our annual meeting of shareholders. We pay each non-employee member of the Finance and Audit Committee $2,500 for each committee meeting attended in person, and we also pay the chairman of that committee an annual retainer of $10,000. For all other committees, we pay the chairman $1,500 for each meeting attended in person and all other non-employee committee members $1,000 per meeting attended in person. In the discretion of the Executive Chairman of the Board of Directors, we pay each non-employee director $500 for each Board and committee meeting attended by telephone. In addition, we grant each non-employee director a fully vested option to purchase common stock having a value of $65,000 on each date that he or she is elected or re-elected to the Board. We also grant each non-employee director restricted stock having a value of $65,000 on the first business day of each calendar year. The restricted stock vests 90% on the first anniversary of the grant, 5% on the second anniversary and 5% on the third anniversary, and is not transferable until the director departs from the Board. In addition to the above, the Lead Independent Director, who receives no other compensation for serving in that capacity, is entitled to administrative assistance in the form of direct access to Company personnel or reimbursement therefore in an amount determined by the Board of Directors or the Compensation Committee. The Lead Independent Director is also entitled to use the Companys aircraft for personal use up to a maximum of 15,000 miles per year.

Section 162(m) of the Internal Revenue Code places a limit of $1,000,000 on the amount of compensation that the Company may deduct in any one year with respect to certain executive officers. There is an exception to the $1,000,000 limitation for performance-based compensation meeting certain requirements. The nonqualified stock option grants that the Company awards under its Equity Compensation Plan, as amended and restated (the Equity Compensation Plan) are designed to qualify under the compensation requirements of this provision. The Compensation Committee believes that compensation paid to the Named Executive Officers for 2009 is properly deductible under Section 162(m); however, no assurance can be made in this regard.

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