Staff Report
AstraZeneca’s CEO, Pascal Soriot, is poised to potentially earn £18.7 million this year, following a resounding endorsement from shareholders who backed the decision to elevate his compensation package, solidifying his position as the highest-paid executive within the FTSE 100 index.
The approval, with over 60% of shareholders in favor, marks a significant milestone in Soriot’s remuneration trajectory, signaling a notable increase from his previous earnings. While his base salary remains at approximately £1.5 million, the approved motion grants him the opportunity to garner annual incentive payments reaching up to 850% of this base rate, contingent upon achieving long-term performance objectives. This substantial enhancement contrasts with his prior incentive allowance capped at 650%.
In addition to the augmented incentive structure, Soriot’s annual bonus potential has surged, now poised to reach a maximum of 300% of his base salary, up from the previous limit of 250%.
Already a recipient of £16.9 million in the previous fiscal year, Soriot’s compensation has sparked discussions within both AstraZeneca’s shareholder community and the broader financial landscape. Despite dissenting voices, including advisories from groups like Glass Lewis who deemed the proposed pay increase as “excessive,” advocates argue that Soriot’s leadership has been instrumental in driving AstraZeneca’s remarkable performance over the past decade.
Under Soriot’s stewardship since 2012, AstraZeneca has witnessed a remarkable resurgence, with its stock price surging by over 270%. This resurgence owes much to strategic investments in research and development, particularly in pivotal areas such as oncology, respiratory, and cardiovascular ailments.
Critics and proponents alike point to the competitive landscape within the pharmaceutical industry, citing the necessity for UK-based firms to remain competitive against their American counterparts in attracting top-tier talent. Comparable compensation packages awarded to executives at rival firms like Eli Lilly & Co. and Johnson & Johnson underscore this imperative.
Moreover, AstraZeneca’s announcement of a 7% increase in its annual dividend for 2024, signaling confidence in the company’s financial outlook, further accentuates the significance of Soriot’s leadership and the strategic direction pursued under his guidance.
