IOM spokeswoman Jennifer Walsh said in an e-mail that Dzau initiated steps to resign from his corporate board positions before Wednesday's announcement and that he has committed to severing the ties by the time he begins his six-year term in July.
Since 2005, he has served on Pepsico's board of directors, writer Larry Husten noted in a blog post on Forbes.com.
According to Pepsico's 2013 proxy statement, Dzau deferred his retainer of $66,667 for the year ending Dec. 29, 2012, in lieu of 944 units of phantom stock, where cash is paid at a future date in an amount equal to the market value of stock shares. Dzau also serves on the boards of Alynylam Pharmaceuticals (he was paid $50,000 and received option awards of $89,000 in 2013) and medical devicemaker Medtronic (PDF) (he was paid $80,000 and received stock awards worth $140,000 in 2013).
Presidents are required to disclose their financial holdings on an annual basis and experts who serve on IOM committees are screened for potential conflicts of interest, said the IOM spokeswoman.
“They can't have any financial interest that would create an unfair competitive advantage for themselves or an organization,” Walsh wrote. “In general, the IOM president and committee members cannot participate in anything in which they have a financial conflict of interest.”
Dzau could not be reached for comment.
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