Tuesday 31 May 2016 3:17 pm

Valeant’s keeping former chief executive Michael Pearson on as a consultant

Michael Pearson, the former Valeant chief executive that was ousted from the company earlier this year, will remain on as a consultant, filings have today revealed.

He will also pocket a $9m (£5m) severance payment.

Pearson, who since he was appointed CEO in 2008 steered Valeant through a 1,000 per cent share price increase and subsequent collapse, formally left the company in early May after clashing with investors and board members.

Pearson can take home a maximum of $83,333 a month this year for consulting services, plus expenses, reduced down to $15,000 per month through 2017.

From 2018 onwards Pearson could be paid up to $3,750 per day.

Pearson has attracted heavy criticism from the likes of activist investor Bill Ackman, who took a position on the company's board of directors when Pearson was shown the door. Joseph Papa took on the top job earlier this month.

Legendary investor Warren Buffet has also slammed the former chief executive, telling CNBC's Squawk Box programme businesses shouldn't be run as Pearson ran Valeant.

Valeant came under pressure for its drug price increases last year, shortly before Pearson was hospitalised with severe pneumonia. There had previously been questions around Pearson's aggressive acquisition strategy, which saw the company spend little on researching new drugs.

Valeant's share price hit a high of $263.70 in August of 2015 and fell as low as $25.27 in April of 2016 due to doubts that the company could recover from its hefty debt load and concerns over its accounting practises.

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Then-chief financial officer Howard Schiller, who took on the top role while Pearson was in hospital, faced questions from congress over drug price hikes alongside wannabe supervillan and then-chief executive of Turing Pharma Martin Shkreli, who rose to infamy for hiking the price of a life-saving drug by 5,000 per cent last year.