Endo chairwoman, founder to retire

Carol A. Ammon, one of the highest-paid executives in the Philadelphia region as CEO of the specialty-pharmaceutical company she started, has decided to retire May 30 as chairwoman of the board of Endo Pharmaceuticals Holdings Inc.

The Chadds Ford company said yesterday that Ammon, 56, planned to devote more time to her philanthropic activities and would not seek reelection to the board.

Ammon, who began her career as an associate research scientist and became president of U.S. Pharmaceuticals of DuPont Merck Pharmaceuticals Co., was traveling and unavailable for comment. "She prefers to be low-key about her plans," Endo spokesman Bill Newbould said.

Ammon said in an interview last May that she wanted to focus on philanthropy related to health care, education, and helping children with disabilities, funneling the money through a foundation she started. Ammon lives in Wilmington and is chairwoman of the board of directors and the executive committee of Christiana Care Health System.

Ammon, who stepped down as CEO in 2005, was the highest paid among Philadelphia's top executives in 2005, according to The Inquirer's annual executive-compensation report. She was the first woman to top the list since The Inquirer began tracking local executive compensation in 1994.

Ammon's total direct compensation in 2005 was $171.7 million, and it reflected primarily the value of options she exercised on 7.3 million shares of Endo stock. Her cash compensation, $258,939, did not include a bonus.

Endo will file a proxy statement on 2006 executive compensation with federal regulators at the end of the month.

In 1997, Ammon and two colleagues bought several old pain medications that DuPont Merck wanted to divest. They raised $277 million and acquired a line of products originally part of a company called Endo, started in 1920 in New York City.

The new owners kept the Endo name and spun off an independent company. Their business decision paid off handsomely: Endo, with a market value of about $4 billion, expects sales of more than $1 billion this year. The company's lead product, Lidoderm, a topical pain patch, had sales of $567 million in 2006.

"Carol Ammon has been an inspiration to us all," said Peter A. Lankau, Endo president and chief executive officer. "Thanks to her foresight, courage and leadership, Endo has become the market leader in pain management. Simply put, without Carol, there would be no Endo."

The company named Roger H. Kimmel, an independent director since 2000, to succeed Ammon as chairman.

Endo shares closed up 13 cents at $30.66 on the Nasdaq.

Explore The Inquirer's Executive Compensation database, including information on Carol A. Ammon, at: http://go.philly.com/execpayEndText