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Criticism at US$78m 'golden handshake'
Source: Agencies |
February 18, 2013, Monday
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PHARMA group Novartis' decision to pay up to 72 million Swiss francs (US$77.94 million) to outgoing Chairman Daniel Vasella has unleashed a wave of indignation among activist shareholders and politicians.
Vasella will receive the "golden handshake" in tranches of 12 million francs over six years if he respects the non-competition clauses of his contract, triggering criticism across all political camps.
"This self-serve mentality undermines confidence in the economy as a whole. It causes enormous damage to the social cohesion in our country," Justice Minister Simonetta Sommaruga told Sunday newspaper Sonntagsblick.
Vasella, who has been chairman of Novartis since 1999, serving as both chairman and CEO for 11 years from 1999 to 2010, gave details on the amount he is entitled to on Friday, following reports on website insideparadeplatz.ch.
He said in a statement Novartis would pay him a maximum of 72 million francs "according to fair market value" if he refrained from making his knowledge and know-how available to competitors, adding he intended to donate the whole amount, net of taxes, to charity.
Novartis spokesman Eric Althoff said Vasella did not wish to comment further before Friday's annual general meeting in Basel, at which he is not going to stand for re-election as chairman.
Vasella faces stiff criticism from activist shareholder groups. "This is scandalous," Roby Tschopp, head of shareholder group Actares, said. "All we can do is try to motivate as many shareholders as possible to refuse to discharge the board of directors on Friday."
Swiss newspaper NZZ am Sonntag reported another small shareholder group, Ethos, would also refuse to grant the discharge.
Vasella will receive the "golden handshake" in tranches of 12 million francs over six years if he respects the non-competition clauses of his contract, triggering criticism across all political camps.
"This self-serve mentality undermines confidence in the economy as a whole. It causes enormous damage to the social cohesion in our country," Justice Minister Simonetta Sommaruga told Sunday newspaper Sonntagsblick.
Vasella, who has been chairman of Novartis since 1999, serving as both chairman and CEO for 11 years from 1999 to 2010, gave details on the amount he is entitled to on Friday, following reports on website insideparadeplatz.ch.
He said in a statement Novartis would pay him a maximum of 72 million francs "according to fair market value" if he refrained from making his knowledge and know-how available to competitors, adding he intended to donate the whole amount, net of taxes, to charity.
Novartis spokesman Eric Althoff said Vasella did not wish to comment further before Friday's annual general meeting in Basel, at which he is not going to stand for re-election as chairman.
Vasella faces stiff criticism from activist shareholder groups. "This is scandalous," Roby Tschopp, head of shareholder group Actares, said. "All we can do is try to motivate as many shareholders as possible to refuse to discharge the board of directors on Friday."
Swiss newspaper NZZ am Sonntag reported another small shareholder group, Ethos, would also refuse to grant the discharge.
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