The Investment Association, an influential investors group from the City of London, has come out against the proposed annual pay package of AstraZeneca
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Chief Executive Pascal Soriot, which could potentially net him some £18 billion ($25 million).
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The move from the U.K. asset managers’ trade body comes on the eve of the pharmaceuticals group’s annual meeting on Tuesday, where investors will have to approve a hefty raise of Soriot’s bonus for this year.
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The Investment Association issued its “amber warning” on the compensation scheme, its second-highest level of alert, according to the Times of London.
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Three other investors advisory groups had already advised voting against the package, which would increase the French-born CEO’s annual salary by 3% to £1.3 million, and bump his share award to a maximum of 650 percent that amount, with his annual bonus raising to a potential 250% of his salary.
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According to the AstraZeneca annual report, the package would be worth £17.8 million if the company’s share price raises by 50%, and £8.6 million if the stock doesn’t rise.
Read: Under-40s to be offered alternative COVID-19 vaccines to AstraZeneca’s in the U.K.
The outlook: AstraZeneca has been caught in controversy over its COVID-19 vaccine’s safety and delivery problems, but investors remain divided on Soriot’s merits, with some remembering that he successfully fought off a takeover attempt by U.S. Big Pharma competitor Pfizer
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in 2014.
From the archives (March 2021): AstraZeneca sold its stake in Moderna for more than $1 billion, as it looks to develop its own pipeline of drugs
