Drug giant AstraZeneca has suffered a “major shareholder rebellion” over proposals to raise bonus levels for its bosses, including CEO Pascal Soriot (pictured), says Julia Bradshaw in The Daily Telegraph. While the proposals were passed, over 40% of AstraZeneca’s investors voted against them.
Soriot’s possible earnings have now climbed from 650% of his salary to 900% in just two years. The reason the revolt went as far as it did was due to opposition from Institutional Shareholder Services (ISS), which advises 4,000 clients on how they should vote, says Oliver Shah in the Sunday Times. However, while the likes of ISS can be useful in fighting “egregious bonuses”, such as those at floundering Cineworld, their “box-ticking” is unfair for Soriot, one of the few “world-class chief executives in the FTSE 100”. AstraZeneca’s share price has increased by 80% since he took over and it has developed a Covid-19 vaccine with Oxford, so“if anyone deserves a pay rise, it is Soriot”.
Soriot is a “talented chief” whose performance “actually lives up to the multimillion-pound billing” and his pay isn’t excessive compared with his contemporaries at Roche or Pfizer, says Helen Thomas in the Financial Times. Still, investors rightly worry that the dynamic in the AstraZeneca boardroom has “tipped” in favour of its “superstar boss”, who is now “being feted as the saviour of the UK’s health and economy”. The increased size and complexity that AstraZeneca is taking on with its $39bn takeover of Alexion, which shareholders also approved at the meeting, could prompt Soriot to demand even more money in future.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Ben Cohen: The Ben & Jerry’s co-founder who wants to break away from UnileverBen Cohen of Ben & Jerry’s ice cream is seeking to break away from Unilever, the conglomerate he sold out to in 2000. It’s a battle for the soul of the brand synonymous with corporate do-gooding.
-
Trump wants to colonise Mars – will it happen?Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Anne Wojcicki: the 'daring' 23andMe CEO who reached too farProfile Anne Wojcicki dreamed of a revolution in personal genomics and medicine and set up 23andMe in 2006. Its collapse into bankruptcy provides a cautionary tale
-
Falling revenues and mounting debt spell trouble for Jumia TechnologiesStruggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.
-
Next reports £1 billion in annual profits for the first time – what's next for the retailer?Clothing retailer Next has become only the fourth member of its sector to surpass £1 billion in annual profits. What does this mean for the company's future?
-
Best of British bargains: cash in on undervalued companies in the UK stock marketOpinion Michael Field, Chief Equity Market Strategist, EMEA, Morningstar, selects three attractive UK stocks where he'd put his money
-
Building firm Keller presents low debt and ample scope for growthGeotechnical contractor Keller, which supports vital global infrastructure, boasts rising profits and a cheap valuation
-
PZ Cussons share price down 75% in last decade – why it's one to watchOpinion Once-strong consumer-goods business PZ Cussons is out of favour with the market. That spells opportunity for investors, says Jamie Ward
-
Cash in on the biotech sector with specialist trust BioPharmaOpinion BioPharma has an attractive niche in lending to asset-rich biotechnology companies
-
India's stock market decline wipes out $1.3 trillion in market value – can investors stay optimistic?More than $1 trillion has been wiped off from India's stock market after investors turn to China. Has the emerging-market darling hit rock bottom?
