Last week Pfizer settled its FCPA enforcement action. In line with the settlement Pfizer paid $15 million in criminal penalties to the DoJ and $45.2 million in disgorgement and pre-judgment interest to the SEC.
The Deferred Prosecution Agreement (DPA) had some very interesting new wrinkles regarding the compliance regime Pfizer agreed to institute. As a corporate secretary or board member, your company needs to consider these new standards, as they become the new minimum standard best practices for an FCPA compliance program.
Chief compliance officer. The Pfizer DPA required the company to assign one or more senior corporate executives to implement and oversee the company’s compliance with policies, standards, and procedures regarding not only the FCPA but any anti-bribery or anti-corruption laws where the company might operate. Such corporate officials are to be designated with the authority to report matters directly to the pharmaceutical company’s board of directors or any appropriate committees.
Business unit compliance heads. The level of specificity for the structure of the company’s compliance group was also unique. In addition to the role laid out for the chief compliance officer, the company agreed to have a series of compliance officers. These officers will have responsibility for each of the business units and reporting obligations through the chief compliance and risk officer or general counsel.
Executive compliance committee. There will be an executive compliance committee to oversee Pfizer's corporate compliance program with respect to both the laws and regulations applicable to the company’s business and its code of conduct. This committee is chaired by the CEO and includes appropriate senior leaders, such as the CFO, general counsel and senior leaders from compliance, finance, audit, human resources and Pfizer's business units.
