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“Excessive” payments to executives put US pharmaceutical company Regeneron in dire straits | Pharmaceutical industry

US pharmaceutical company Regeneron, its Covid treatment was welcomed as a “cure” by Donald Trump Last year, prior to Friday’s annual shareholders meeting, two influential shareholder advisory groups attacked over “excessive” payments to executives.

Investor advisory group Glass Lewis said he was “extremely concerned” that the New York-based company decided to abolish its annual stock options last year. Instead, Regeneron’s CEO Leonard Schleifer and CEO George Yancopoulos’ top two executives each each have a five-year performance-restricted equity unit worth $ 130 million (£ 92 million). Replace with pre-grant.

Glass Lewis aims to keep executives out for the next few years, but wondered if prepayments would be in the best interests of shareholders. The annual value of the grant is estimated to be 51% higher than last year’s stock options.

Another advisory group, the Instituteal Shareholder Services, also expressed concern.

Glass Lewis said the company’s executive compensation has faced “substantial opposition from shareholders” in recent years. Together, the two top bosses raised $ 270 million in salaries and bonuses last year.Schleifer Last year, he was CEO of the global pharmaceutical industry With his $ 135 million package.

Regeneron’s plan was endorsed by 70.1% of the votes cast in last year’s triennial advisory poll on executive compensation. At the time of the meeting, Schleifer owned 16.6% of the company, while French pharmaceutical company Sanofi owned 20.6%. Has been on sale since thenExcluding these interests, less than 33% of the votes were in favor of the company’s salary plan.

Regeneron supplies the US government with millions of Covid antibody cocktails. REGEN-COVAfter receiving an emergency permit for treatment in November. It is a combination of two monoclonal antibodies designed to prevent the coronavirus peplomer from attaching to receptors in the body, prevent Sars-CoV-2 infection, and treat people infected with the virus.

Shares of Nasdaq-listed and London-listed companies went from $ 564 to over $ 600 per share in early October 2020 after the then President Trump claimed to have cured Covid and advertised the treatment in a video. It soared. Since the beginning of 2020, the market share has increased by 41%.

“Excessive” payments to executives put US pharmaceutical company Regeneron in dire straits | Pharmaceutical industry

Source link “Excessive” payments to executives put US pharmaceutical company Regeneron in dire straits | Pharmaceutical industry

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