NEW YORK - Pfizer Inc. is cleaning house at the pension fund of Pharmacia Corp., eliminating the jobs of the top two executives responsible for running the Pharmacia fund and doing a review of the external asset managers for the defined benefit plan.
New York-based Pfizer, which acquired Pharmacia, Peapack, N.J., in a deal that closed last month, has terminated Patricia Haverland, senior director of pension investments, and Charles Malone, manager of pension investments, sources said.
Ms. Haverland and Mr. Malone declined to comment, referring all calls to Pfizer executives.
Sharon Kinsman, assistant treasurer at Pfizer, who oversees the pension fund, declined to comment. Pfizer spokesman Paul Fitzhenry said, "I can't comment on any individuals who may or may not stay with the company."
He also said Pfizer executives are reviewing both Pfizer's and Pharmacia's money managers "to come up with an optimum structure for the business going forward."
Ms. Haverland's and Mr. Malone's dismissals weren't a surprise to them. "They told us after the merger that they would be out looking for work," one money management executive said.
All assets moved
A person familiar with Pfizer's plans for the assets said that all of the $2.6 billion in Pharmacia retirement assets had been moved from the Pharmacia trust to become part of the Pfizer plans, which totaled $7.3 billion before the acquisition.
John Siciliano, director of marketing at Dimensional Fund Advisors Inc., Santa Monica, Calif., which is an equity manager for the Pharmacia pension fund, said, "We've not heard anything new on Pharmacia. We're delighted to have them as a client."
Terry Miller, a spokeswoman for Prudential Financial, Newark, N.J., the parent company of Jennison Associates LLC, New York, which manages fixed-income money and domestic and international equities for the Pharmacia defined benefit plan, said the firm could not make any comment on the situation.
Carolyn Jones, a spokeswoman for J.P. Morgan Fleming Asset Management, New York, which manages fixed-income and real estate equities for the Pharmacia fund, also declined to comment
Both pension funds use Northern Trust as their custodian and both funds use Barclays Global Investors, San Francisco, for their indexed equity mandates.
As of last Sept. 30, Pfizer's $2.96 billion defined benefit plan had 47.8% in domestic stocks, of which 7.6 percentage points was in Pfizer stock; 25.3% in domestic fixed-income; 12.1% in foreign stocks; 13.8% in private equity and 1% in cash, according to Pensions & Investments' survey to the nation's largest 200 pension funds.
Pharmacia's $1.9 billion defined benefit plan had 45% in domestic equities; 10% in indexed equities; 15% in international equities; 25% in bonds and 5% in real estate equities, according to the 2003 Money Market Directory. n