Valeant’s Former C.E.O. to Receive $9 Million Severance

J. Michael Pearson, the former chief executive of Valeant Pharmaceuticals International who departed in early May during a series of investigations into the company’s business practices, will receive a $9 million severance payment and continue working as a consultant through 2017, Valeant said Tuesday. The company, as well as a major investor, William A. Ackman, have taken steps to distance themselves from Mr. Pearson and signal that the company was making a fresh start. But under the agreement, Mr. Pearson will also receive more than $83,000 a month through the end of this year and $15,000 monthly in 2017, plus expenses and health insurance benefits, to help the company make the transition to a new chief executive and handle the host of legal investigations. He will also be eligible for bonuses tied to the company’s performance in 2016 before May 2, when he left the company.