• AML
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • FAQS
Subscribe
Donate
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
Whistleblower Network News
No Result
View All Result
Home False Claims-Qui Tam

Whistleblowers Are Underpaid And Under Appreciated

WNN StaffbyWNN Staff
June 22, 2012
in False Claims-Qui Tam, News
Reading Time: 5 mins read
Share on TwitterShare on FacebookShare on LinkedInEmail

Washington, DC, attorney Steven N. Berk wrote the following in his blog, The Corporate Observer. He has generously given permission for us to repost it here:

To many, whistleblowers are akin to lottery winners; just plain lucky. If you complain enough (like buying plenty of lottery tickets) you may eventually get lucky. To others, whistleblowers are disloyal, greedy and opportunistic. Fueling these characterizations is surely a public perception that whistleblowers obtain huge awards for little or no work.

I am here to argue that perception is wrong. If whistleblowers’ compensation is measured against their contribution to the common good and compared to let’s say, the Hollywood movie star du jour or the corporate executive that, after a losing year, convinces the Board of Directors (wink nod) to provide a pay package worth tens of millions, whistleblowers are a bargain. Yes a bargain. If anything they are under compensated.

Register for National Whistleblower Day

First, she compensates her lawyers with a third of her award, reducing the value to her to $62 million. Second, she must immediately pay taxes but we’re not going to even factor that in. Significantly, Ms. Eckard did not prevail in this matter in a manner of days, weeks or months. It was years. Years spent in uncertainty both professionally and surely financially. She began her journey in 2002, so any monies she receives are for a ten year period, which puts her at $6.2 million per year (about the same as an above average – but not an all-star – shooting guard in the NBA).

A nice salary, no doubt, but lets compare that to the billions in compensation going to pharmaceutical and other executives.

First, Glaxo Smith Kline earned approximately $31 billion in gross profit in 2011 (according to their annual report). Eckard’s award is small pebbles by comparison.

Second, with that her measly $6.2 million, she wouldn’t even come close to cracking the top ten salaries of CEOs in the pharmaceutical industry:

  1. Bill Weldon – J&J – $28.7M
  2. Daniel Vasella – Novartis – $27M
  3. Miles White – Abbott- $25.6M
  4. Jeffrey Kindler – Pfizer- $24.7M
  5. Richard Clark – Merck – $24.6M
  6. Robert Coury – Mylan – $22.9M
  7. Kevin Sharer – Amgen – $21.1M
  8. James Mullen – Biogen Idec – $20M
  9. John Lechleiter – Eli Lilly – $16.5M
  10. John Martin – Gilead Sciences – $14.2M

Non-Producers CEOs
It’s also instructive to look at salaries outside the pharmaceutical industry to put in a broader perspective the value achieved by Ms. Eckard.

Our compensation hero, Vikram Pandit, like many other executives, made millions ($7.72 to be exact) by losing money for his shareholders: Citi stock dropped 44% in 2011

Albert Pujols is being paid $12 million/year and striking out at a record pace. And Lady Gaga, love her or hate her, according to Forbes, raked in $52 million.

And, by the way, Ms. Eckard exposed dangerous practices in GSK’s manufacturing plants that allowed drugs of different strengths and types to be bottled together. In all likelihood, she saved hundreds of lives. Has anyone else on this list done that?

The Case of Kyle Lagow: Example 2
Consider Kyle Lagow, an appraisal manager for Countrywide, the infamous mortgage subsidiary of Bank of America. Mr. Lagow earned $14.5 million in exchange for information that led to a $1 billion settlement between Bank of America and the federal government as well as a $25 billion settlement between the entire industry and various states. A nice piece of work indeed.

Lagow worked at Countrywide for four years – from 2004 to 2008. He didn’t even settle his claims and iron out an award until 2012! That’s 8 years of recognizing illegal practices, reporting them, fighting for what’s right, and hoping for the possibility of an award but certainly having no guarantees. What’s more, Lagow helped uncover fraud that contributed to the second worst financial collapse in history and derailed an entire economy. Still, despite the gravity of the issues he faced and the behemoth defendant in Bank of America, Lagow soldiered on alone. In return, he earned approximately $1.8 million per year – before he pays his attorneys and the IRS.

That’s it? $1.8 million for uncovering a scheme that cost the government billions of dollars and led to thousands of unnecessary foreclosures? Brian Moynihan, CEO of Bank of America was paid more than $10 million in his fear year on the job in 2011. This despite the Countrywide fiasco and a falling stock price.

Do you know how far back you’d have to go to find a star baseball player making so little money per year? 1979. That’s the year Nolan Ryan became the first player to average more than $1 million per year. And oh, by the way, can you guess how much Novak Djokovic won as U.S. Open champion last year? $1.8 million exactly – in two weeks. Djokovic is a great player, to be sure, but he didn’t exactly save thousands from foreclosure and help remedy one of the greatest financial crimes in history.

The True Value of Whistleblowers
When we look at the true societal value added by whistleblowers as well as the years of work and determination it takes to secure a whistleblower award, there can be no reasonable complaint about the amounts of the awards. Even Cheryl Eckard, among the richest of whistleblowers, is not overpaid – certainly not when you take a closer look at the facts.

Accordingly, efforts directly or indirectly to curb their compensation should be thwarted. And if we are going to look at compensation, we may as well look at the pay doled out to CEOs, entertainment and sports figures. My choice would be to cap the vast wealth (in the billions) of hedge fund managers who create nothing and instead contribute to risk, turbulence and the seeds of financial instability by taking hugely leveraged positions on anything from gold to pine cones – but that’s a story for another day. For today, it’s enough to remember that despite conventional wisdom, whistleblowers are not overpaid.

Tags: False Claims/Qui Tam
Previous Post

U.S. Special Counsel Warns Agencies Not to Spy on Whistleblowers

Next Post

NWC amicus seeks SOX protection for international whistleblowers

WNN Staff

WNN Staff

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. We will focus on the SEC, IRS, and Commodities whistleblower programs, qui tam and False Claims Act litigation, and critical anti-corruption programs, such as cases filed by the Department of Justice under the Foreign Corrupt Practices Act. Whistleblower Network News covers national and international legal developments and publishes editorial and opinion articles on whistleblowing and compliance issues.

Next Post

NWC amicus seeks SOX protection for international whistleblowers

Please login to join discussion

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

Calls Grow for Law Protecting AI Whistleblowers

Advocates Detail Need for SEC Whistleblower Reform

Raytheon Whistleblower Receives $1.5 Million for Alleging Cybersecurity Non-Compliance

Ruling Striking Down Trump Order Targeting Law Firm Seen as Crucial for Whistleblowers

MJH Healthcare Settles Whistleblower Allegations of Postal Rate Fraud for $2 Million

Poll Shows Overwhelming Support for Stronger Whistleblower Laws in Australia, Mirroring Polling in US

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • Rules for Whistleblowers
  • Frequently Asked Questions
  • Advertise
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. 

Submit an Article

Copyright © 2025, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN
RSVP to National Whistleblower Day 2025! July 30, 2025 on Capitol Hill
RSVP NOW

Add New Playlist

No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Make National Whistleblower Day Permanent
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook

Copyright © 2024, Whistleblower Network News. All Rights Reserved.

Go to mobile version