AstraZeneca could be heading for a pay storm at its upcoming AGM after the biggest grouping of public-sector pension funds were today advised to vote down a remuneration plan that sees the drugmaker’s new chief executive pocket £6.5 million after just three months’ work.
A week after the pharma firm announced nearly 4000 job losses — including at least 700 in the UK — and a 35% drop in annual profits, Astra announced its new boss Pascal Soriot was awarded a pay deal including a £991,000 “golden hello” to compensate him for his forfeited bonus from his previous employer, Roche, and £2 million in restricted shares and £2 million in ordinary shares, subject to performance. Former boss, David Brennan, who quit after pressure from disappointed shareholders, also took home £4.9 million for six months’ work.
Now the Local Authority Pension Fund Forum, which runs £115 billion of assets and advises 57 public-sector pension funds around the UK, has advised members to oppose Astra’s remuneration report at its AGM on April 25. “Companies should discontinue the practice of paying ‘golden hellos’,” it said. Forum chairman Counsellor Kieran Quinn added: “We don’t think executives should be paid for performance they have not achieved. We will challenge such awards when we see them.”
