Boston, Massachusetts 2021-06-08 16:50:25 –
TaTwo prominent shareholder advisory companies are Regeneron Pharmaceuticals (REGN) Shareholders dismissed board members chairing the Compensation Committee, citing “problem” payroll practices and concerns about “excessive” awards given to the top two executives. ..
The advisory company warned another investor that Regeneron’s board of directors would give CEO Leonard Schleifer and President and Chief Scientific Officer George Jancopros an annual grant, not an annual grant, in five years. It claims to have supplied $ 130 million worth of prepaid performance stock units. This approach may be binding on management, but it also provides board flexibility if work performance changes in the meantime. Companies say they lose.
In addition, according to the Glass Lewis Advisory Company, the annual value of PSU grants has increased by 51% year-on-year. The potential value of the grant is not guaranteed, but “the dollar-value cost of the disclosed grant is significantly higher than the executive compensation levels of public companies around the world,” Glass Lewis advised. I wrote in the renote.
This was the main reason the company, along with Instituteal Shareholder Services, proposed to Regeneron shareholders to dismiss George Thing, who heads the Compensation Committee, at the June 11 Annual General Meeting of Shareholders. The ISS states that such concerns are usually communicated by voting for paid proposals, but Regeneron holds such a vote only once every three years. Next time is 2023.
As a result of the PSU grant, Schleifer’s salary reached $ 125.2 million last year, up from $ 21.8 million in 2019, the ISS wrote to investors. And his total salary was 9.4 times the median of his colleagues.In addition, Schleifer and Jancopros’ annual incentive awards were based on corporate performance, while awards for other executives were split into 60% based on corporate performance and 40% based on personal performance.
In the power of attorney, the pharmaceutical company claims to have taken this and other steps in response to recent shareholder feedback. Prepaid PSUs benefit two top management long-term shareholders. It was granted to reward “creating extraordinary shareholder value,” the agent said. In addition, no additional grants will be awarded until December 2025. (See page 53.. )
A Regeneron spokeswoman said, “As a healthcare venture capital investor and chief executive officer of a biomedical company, Thing’s extensive healthcare and financial expertise, management leadership experience, and extensive knowledge of the company. Led to the board’s decision to nominate Shin for reelection. On the board. “
I couldn’t contact Shin, who had been the director for 33 years.
Such recommendations by advisory firms are not uncommon in an era when executive compensation is comparable to permanent microscopes. However, as Glass Lewis pointed out, Regeneron “has faced considerable shareholder opposition in recent years over executive compensation programs and practices.” In other words, there is history behind the move to expel Thing.
This does not mean that Regeneron is not working well based on various metrics. According to the ISS, dividends were in line with the industry group and strong total shareholder returns above the S & P 500 Index on a yearly basis. But on the other hand, the five-year return is negative, below the comparison of both.
Nonetheless, Regeneron has successfully developed a monoclonal antibody approved for emergency use in the treatment of Covid-19, generating significant sales and favors.Medicine – which Made a headline After being presented to former President Trump – First-quarter sales of this year were $ 262 million, or about 15% of product sales of $ 1.72 billion.Food and Drug Administration Reauthenticated Emergency use last week.
Meanwhile, the advisory firm also recommends that shareholders dismiss the director, as Tony Coles, CEO of Cerevel Therapeutics, has three or more public directors. The ISS also urged shareholders to dismiss Marc Tessier-Ravine, who did not attend more than 75% of board and committee meetings in the previous fiscal year. Although he is the only director based on the West Coast, Regeneron has taken steps to schedule meetings for him to attend.
Regeneron shareholders urged to boot board member over exec pay practices Source link Regeneron shareholders urged to boot board member over exec pay practices