Execs at troubled Merrimack granted severance and stay of execution

After the failure of its latest drug candidate in clinical trials, US oncology specialist Merrimack Pharmaceuticals (Nasdaq: MACK) has issued a document to the US Securities and Exchange Commission, announcing the departure of the company’s top two executives.

Although Richard Peters, chief executive and Jean Franchi, chief finance officer, will be stepping down from their roles, they will receive a generous severance package and will stay on as well-paid consultants.

Dr Peters will pick up a lump sum of around $744,000 – amounting to around 12 months of his base salary – along with a bonus of nearly $295,000, while he will be paid $31,000 per month as a consultant for a period loosely agreed at two years.