(MENAFN) Two prominent shareholder advisers of the British-Swedish multinational pharmaceutical company AstraZeneca have raised concerns over the proposed remuneration package for CEO Pascal Soriot, describing it as excessive. The company's plan to potentially pay Soriot up to USD23.59 million has drawn scrutiny from these advisers, who argue that his current remuneration is already competitive when compared to international peers in the industry. AstraZeneca submitted the pay proposal last February, outlining a series of performance criteria that Soriot must meet, including new drug approvals, earnings per share, and total sales, to qualify for the maximum payout for the year.
Pascal Soriot, who has been at the helm of AstraZeneca since 2012, has overseen the company's transformation into the second-largest entity on the FTSE 100 index, trailing only Shell. His total compensation reached £16.9 million last year, reflecting substantial rewards for meeting most of his long-term goals and positioning him as one of the highest-paid CEOs on the blue-chip index. In justifying the proposed increase in Soriot's potential compensation, AstraZeneca emphasized the need to enhance competitiveness relative to its American and European counterparts, despite acknowledging that the hike would be significant within the context of the United Kingdom.
However, both Glass Lewis and ISS, influential shareholder advisory firms known for providing recommendations on voting at annual meetings and corporate governance matters, have voiced objections to AstraZeneca's rationale. They have urged investors to vote against the proposed pay plan at the company's upcoming annual general meeting scheduled for April 11. According to a report by The Financial Times, these advisers contest AstraZeneca's assertion that the proposed increase is necessary for competitiveness, signaling potential shareholder dissent over executive compensation practices within the pharmaceutical giant.
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