January 18, 2011 / 11:09 PM / 9 years ago

J&J pares bonuses after tough 2010

* Reduced bonuses affect half of global workforce

* Tied to J&J performance last year, not cost controls

NEW YORK, Jan 18 (Reuters) - Johnson & Johnson (JNJ.N) employees eligible for bonuses last year will receive only 90 percent of the recommended amount due to a somewhat disappointing overall company performance in 2010.

The diversified healthcare company, which paid out 100 percent of recommended bonuses the prior year, recalled hundreds of millions of bottles of Tylenol and other consumer medicines last year due to quality control problems. Moreover, the company’s stock underperformed the drug sector.

The New Brunswick, New Jersey-based company, which has more than 100,000 employees worldwide, makes a wide array of prescription medicines, medical devices and consumer drugs and products.

It said the less-generous bonus for 2010 is not a cost-control effort, but largely a reflection of J&J’s failure to meet some of its financial goals.

J&J said about half its workers are eligible for bonuses and are affected and they have been notified. Company sales representatives and employees covered by collective bargaining agreements are not affected by the move. (Reporting by Ransdell Pierson; editing by Andre Grenon)

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