Former Valeant CEO getting $9M severance payout

The former CEO of Valeant Pharmaceuticals International Inc. will get a $9 million USseverance payout, the company disclosed Tuesday in a U.S. regulatory filing.

The Laval, Que.-based company said Michael Pearson's last day with the company was May 2. It said he is due the severance payment within 60 days of that date.

Pearson is also eligible for a pro-rated performance bonus for the 2016 financial year.

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The company also disclosed that Pearson has agreed to make himself available to consult with Valeant at a rate of $83,333 US per month plus expenses through the end of this year. After 2016, he will get $15,000 US for each month he provides consulting services to the company.

Pearson will also be eligible to get $3,750 US per day, plus expenses, to co-operate withValeanton any material issues, including any federal, state or regulatory probes.

After joining Valeant in 2008, Pearson oversaw a period of growth that saw Valeant evolve into a stock market darling.

However, that growth brought with it a big debt load, and government scrutiny after the company jacked up the prices on some drugs.

Pearson was replaced as Valeant's top executive by Perrigo CEO Joseph Papa.