Two vectors of greed intersected in PPD, as The Carlyle Group closed on the contract drug research firm. The first is private equity's desire to make huge returns in health care, already prohibitively expensive. Throw in management fees, increased interest expenses, special dividends/distributions and an expected 30% annual ROI and health care costs aren't going down.
The second manifestation of greed came from PPD's golden parachute for their CEO for three months work. StarNews reported:
PPD said that Hill would receive $3.065 million as part of golden parachute payments to top executives and board members if the deal with Carlyle and Hellman & Friedman was consummated.
That's $1 million per month worked in retirement. It's a PEU world.
