The Investment Association, an influential investors group from the City of London, has come out against the proposed annual pay package of AstraZeneca
Chief Executive Pascal Soriot, which could potentially net him some £18 billion ($25 million).
- The move from the U.K. asset managers’ trade body comes on the eve of the pharmaceuticals group’s annual meeting on Tuesday, where investors will have to approve a hefty raise of Soriot’s bonus for this year.
- The Investment Association issued its “amber warning” on the compensation scheme, its second-highest level of alert, according to the Times of London.
- Three other investors advisory groups had already advised voting against the package, which would increase the French-born CEO’s annual salary by 3% to £1.3 million, and bump his share award to a maximum of 650 percent that amount, with his annual bonus raising to a potential 250% of his salary.
- According to the AstraZeneca annual report, the package would be worth £17.8 million if the company’s share price raises by 50%, and £8.6 million if the stock doesn’t rise.