Valeant is making huge changes to its board

Five of its long-standing directors have agreed to step down to make room for the new nominees, the Journal reported, citing people familiar with the matter.

The Journal could not obtain the names of the new directors, but they reportedly draw from traditional pharmaceutical companies, suggesting a bid for credibility on Valeant's part.

New Chief Executive Joseph Papa, former Perrigo head, will also join the board and take on the role of chairman starting Monday, the report said.

Hedge fund billionaire and Valeant board member William Ackman signaled the change during his testimony at a Senate hearing on Wednesday.

"A lot of the board is going to turn over," Mr. Ackman told the Senate committee, according to the Journal. During the hearing, Ackman, outgoing CEO Michael Pearson and former interim CEO Howard Schiller faced tough questions from Elizabeth Warren, Claire McCaskill and other senators.

The directors who plan to step down are Pearson, Schiller, Mason Morfit, Norma Provencio and Theo Melas-Kyriazi, according to the report.

Other Valeant directors, including Ronald Farmer and Chairman Robert Ingram, are considering resigning, and have been asked to notify Valeant by Thursday, the report said, citing a source.

In addition to a salary of $1.5 million, Papa will receive 1.3 million restricted shares in the company, according to the Wall Street Journal report. If the stock reaches the threshold of $270 a share, Papa would receive stock worth more than $500 million.