Novartis discloses compensation for new Chairman and Chairman ad-interim
Posted: 24 April 2013 | | No comments yet
Novartis announced the compensation for the incoming Chairman of the Board, starting August 1, 2013…
Novartis announced today the compensation for the incoming Chairman of the Board, starting August 1, 2013, as well as the pro-rated compensation for the current Chairman ad-interim. This new disclosure ahead of the 2013 Annual Report reflects the commitment to greater transparency by the Board of Directors and the company.
As Novartis Chairman, effective August 1, 2013, Dr. Joerg Reinhardt will receive a total annual compensation valued at CHF 3.8 million. The total compensation is comprised of equal cash and share components as follows:
- Cash compensation: CHF 1.9 million (gross) per year
- Share compensation: annual value equal to CHF 1.9 million of unrestricted Novartis shares
Dr. Reinhardt will be eligible for pension and insurance benefits according to the standard Novartis benefit plans. There is no variable or other component to his regular compensation unless provided for in the applicable rules and regulations of Novartis.
Dr. Reinhardt will also receive compensation for lost entitlements at his former employer, with a total value of EUR 2.6 million. Payments will be staggered based on the vesting period at his former employer and extend over the period from 2014 until 2016, provided that he remains in office as the Novartis Chairman at the respective due dates.
Prof. Dr. Ulrich Lehner will receive a pro-rated total annual compensation comprised of equal cash and share components valued at CHF 1.9 million for his tenure as Chairman ad-interim, which took effect February 22, 2013, after the company’s Annual General Meeting, and ends on July 31, 2013. The total compensation for this period will be approximately CHF 790,000 (gross). There is no variable or other component to Prof. Dr. Lehner’s compensation.
Following completion of his tenure as Chairman ad-interim, the compensation of Prof. Dr. Lehner will revert to the ordinary compensation for a member of the Novartis Board of Directors as disclosed in the Novartis Annual Report.
Novartis expects to make further disclosures relating to Dr. Daniel Vasella at a future point ahead of the disclosures required for the 2013 Annual Report.
