Vasella Has Too Much Power: Shareholder Group
4 CommentsBy Ed Silverman // February 20th, 2007 // 8:29 am
That’s what Ethos, an activist group that wants to reform Swiss corporate governance, believes. The group opposes the idea that one person should be both chairman and ceo, which is the case at Novartis, where Dan Vasella rules. Ethos also wants to block the re-election of Hans-Jörg Rudloff as chair of the drugmaker’s remuneration committee, because he agreed to award a lot of severance pay.
“Ethos has regularly expressed concerns about certain aspects of Novartis’ remuneration policy and about the combination of functions,” the group says in a statement. “Since Novartis is unwilling to change its practice, Ethos wishes to send a signal by opposing Mr. Rudloff’s re-election and by abstaining from re-electing Mr. Vasella.”
Ethos says it’s “unacceptable” that Mr. Vasella and four other senior executives should be entitled to severance payments amounting to three years’ pay, or five years in case of change in control. Such golden parachutes go totally against the rules of corporate governance best practice.
Yes, but they should have no trouble affording their medicines.
he knows
Two things maybe wrong here; Is this a new pic of Dan or he gained some weight? It’s not hard to do the later since cost of entertainment in big pharma is no problem, be it for them or their customers, doctors. Food is always plentiful and of best quality and so goes for wine and other componenets of first class meals. One has to be a real charater to restrain himself from the bounty offered by big pharma expense accounts.
Secondly, how dare they call Dan, Mr. He is a doctor and only the most intmate circles can call him Doc or Doc Danny. You have to be something else to get there.
The right thing is that finally some circles are awakening from their hibernation, even though it is middle of winter even in Swiss alps. While they were hibernating, Dan and his inner circle have taken over the Basel triangle (for those who do not know there is a huge city block in the shape of triangle that is all owned, and more by Novartis and they are very proud of it. It took a lot of pills over years to accurfe it but at their prices not as many as one would imagine) and beyond and handed out multiple titles to one another. Again, for those who do not know, one only has to get into the inner circles of big pharma at any level and just watch his/her clime on the Co’s food chain almost automatically. This is especially true in Novartis.
As for severence pay, it is excellent and more for those in the inner circles but not so good for the rest, for they usually have only one title, so they are lucky if they get the usual- minimum if at all.
One almost has a sense of something major is happening at the fortres of N so lets just watch it.
he knows
P.s. Just remebered. The last chairman of the company, Sandoz at that time had only that single title. He was a real gentleman by the name Dr. Morow, Muroe or something like that. The CEO was held by someone else for sure. One can be sure that it was the same on the Ciba/Geigy side of the two Basel companies that merged in 1996.
Perhaps the multiple titles went well with the multiple sales forces Novartis introduced soon after the merger. That is another story.
ed
Thanks for writing and sharing all those details. To answer your question, I don’t know what Vasella weighs these days. I fished around for a decent photo, but I have to confess that I don’t know how old it is or whether he looks better or worse now. Maybe he’ll reply directly…….??
he knows
First, today is a Fat Tuesday so the pic is appropriate. Not that he is tuesday type but usually he looks somewhat different.Maybe this pic had that well known ” Tv and pictures add 10lb” effect.
As for personall or proxy comment, do not count on it. They never and I mean NEVER comment or admit anything and there will not be change in such a trivial case as his weight. There is only one other “organization” that religiously practices such “silence is golden” rule. Think they call it Omerta.