Corporate Governance at Merck

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : CGOX004 For delivery in electronic format: Rs. 300;
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Case Length : 12 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Not Available
Organization : Merck
Industry : Pharmaceutical
Countries : Germany


Merck is one of the leaders in the global pharmaceutical industry. The company is well known for its high cholesterol, hypertension, and heart-failure drugs.

The company''s famous drugs include Cozaar and Hyzaar (blood pressure), Zetia and Zocor (cholesterol), Vioxx (pain killer), Propecia (male pattern baldness treatment) and Singulair (asthma).

Merck has put in place various measures to ensure high standards of corporate governance. A system of committees helps the Board in discharging its responsibilities. This case deals with Merck''s corporate governance practices.


This case deals with Merck''s corporate governance practices.


  Page No.
Introduction 1
Background Note 1
Overview of Corporate Governance 3
Board Committees and their Responsibilities 4
Board and Board Committee Meetings 11
Independence of Directors 11
Board's Role in Strategic Planning 11
Compensation of Directors 12
Election of Board Members 13
Exhibits 3


Merck; Corporate governance; Governance; Pharmaceutical industry; Board structures; Board committees; Director compensation; Board members; Vioxx; Cozaar; Audit committee; Compensation and benefits committee; Executive committee; Finance committee; Social responsibility.

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