Sunday, August 30, 2015

$78 million golden parachute for Novartis' Daniel Vasella

Novartis reportedly will pay Chairman Daniel Vasella $78 million when he departs the Swiss drugmaker.

$78 million golden parachute for Novartis' Daniel Vasella

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Novartis will pay Chairman Daniel Vasella $78 million when he departs the Swiss drugmaker, the Wall Street Journal reported over the weekend.

A link to the story is here, but it will require a subscription.

Vasella will get his money - as long as he doesn't work for some other pharmaceutical company for six years.

Many people will shake their heads at the idea of getting more for not working.

Getting that deal in health care is more problematic for some because human health is viewed differently than making widgets or steel or TV sets.

But the high-price of the golden parachute is so high that, according to the Journal, even stockholders and groups representing investors hope to use it to argue for tighter rules on executive compensation in a very business-friendly country.

The Journal reported that Vasella said in an email to the paper that he would donate the proceeds to philanthropic and charitable organizations.

"It has been very important to Novartis that I refrain from making my knowledge and know-how available to competitors and to take advantage of my experience with the company," Vasella said in the statement. "In return, the Novartis Board of Directors agreed to make annual payments according to fair market value provided I fulfill all my obligations."

 

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About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com or 215-854-4506.

David Sell
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