AGL 37.99 Decreased By ▼ -0.03 (-0.08%)
AIRLINK 215.53 Increased By ▲ 18.17 (9.21%)
BOP 9.80 Increased By ▲ 0.26 (2.73%)
CNERGY 6.79 Increased By ▲ 0.88 (14.89%)
DCL 9.17 Increased By ▲ 0.35 (3.97%)
DFML 38.96 Increased By ▲ 3.22 (9.01%)
DGKC 100.25 Increased By ▲ 3.39 (3.5%)
FCCL 36.70 Increased By ▲ 1.45 (4.11%)
FFBL 88.94 No Change ▼ 0.00 (0%)
FFL 14.49 Increased By ▲ 1.32 (10.02%)
HUBC 134.13 Increased By ▲ 6.58 (5.16%)
HUMNL 13.63 Increased By ▲ 0.13 (0.96%)
KEL 5.69 Increased By ▲ 0.37 (6.95%)
KOSM 7.32 Increased By ▲ 0.32 (4.57%)
MLCF 45.87 Increased By ▲ 1.17 (2.62%)
NBP 61.28 Decreased By ▼ -0.14 (-0.23%)
OGDC 232.59 Increased By ▲ 17.92 (8.35%)
PAEL 40.73 Increased By ▲ 1.94 (5%)
PIBTL 8.58 Increased By ▲ 0.33 (4%)
PPL 203.34 Increased By ▲ 10.26 (5.31%)
PRL 40.81 Increased By ▲ 2.15 (5.56%)
PTC 28.31 Increased By ▲ 2.51 (9.73%)
SEARL 108.51 Increased By ▲ 4.91 (4.74%)
TELE 8.74 Increased By ▲ 0.44 (5.3%)
TOMCL 35.83 Increased By ▲ 0.83 (2.37%)
TPLP 13.84 Increased By ▲ 0.54 (4.06%)
TREET 24.38 Increased By ▲ 2.22 (10.02%)
TRG 61.15 Increased By ▲ 5.56 (10%)
UNITY 34.84 Increased By ▲ 1.87 (5.67%)
WTL 1.72 Increased By ▲ 0.12 (7.5%)
BR100 12,244 Increased By 517.6 (4.41%)
BR30 38,419 Increased By 2042.6 (5.62%)
KSE100 113,924 Increased By 4411.3 (4.03%)
KSE30 36,044 Increased By 1530.5 (4.43%)

Pharma group Novartis' decision to pay up to 72 million Swiss francs ($77.94 million) to outgoing chairman Daniel Vasella has unleashed a wave of indignation among activist shareholders and politicians.
Vasella will receive the "golden handshake" in tranches of 12 million francs over six years if he respects the non-competition clauses of his contract, triggering criticism across political camps.
"This self-serve mentality undermines confidence in the economy as a whole. It causes enormous damage to the social cohesion in our country," socialist justice minister Simonetta Sommaruga told Swiss Sunday newspaper Sonntagsblick.
Vasella, who has been chairman of Novartis since 1999, serving as both chairman and CEO for 11 years from 1999 to 2010, gave details on the amount he is entitled to on Friday, following reports on website insideparadeplatz.ch.
He said in a statement Novartis would pay him a maximum of 72 million francs "according to fair market value" if he refrained from making his knowledge and know-how available to competitors, adding he intended to donate the whole amount, net of taxes, to charity.
Novartis spokesman Eric Althoff said Vasella did not wish to comment further before Friday's annual general meeting in Basel, at which he is not going to stand for re-election as chairman. Vasella faces stiff criticism from activist shareholder groups. "This is scandalous," Roby Tschopp, head of shareholder group Actares, told Reuters. "All we can do is try to motivate as many shareholders as possible to refuse to discharge the board of directors on Friday."
He said, however, it was unlikely a majority of shareholders would refuse to grant discharge of liability to the board because information on Vasella's golden handshake had come too late to be taken into account by some bigger shareholder groups. "It only came out because it was leaked. That is not a transparent way of communicating," Tschopp said.

Copyright Reuters, 2013

Comments

Comments are closed.