Pfizer Corp. is turning heads in corporate governance circles with a new board-level committee oversee regulatory compliance—complete with its own independent funding source—that could become a model for other companies.
The pharmaceutical giant promised to create the committee as part settling a derivative shareholder lawsuit that sprang from earlier allegations of misconduct over how Pfizer marketed some of its drugs. As part of the deal, Pfizer will set aside $75 million first to pay for shareholders’ legal fees, with the remainder going to fund the compliance committee. Even after those fees are paid out, the committee will still have more than $51 million to finance its activities for five years, according to court filings.
