Novartis CEO Narasimhan’s Pay Almost Doubles to $18.8 Million

(Bloomberg) — Novartis AG Chief Executive Officer Vas Narasimhan’s compensation almost doubled to 16.25 million Swiss francs ($18.8 million) last year, even as the Swiss drugmaker tries to convince investors it has finally recovered from some strategic missteps. 

The company, whose shares slumped earlier on Wednesday after it reported weaker-than-expected revenue from a new prostate cancer drug, said the increase was largely a result of various performance-linked incentive payouts. 

Narasimhan has been running Novartis since 2018 and during that time he has spun off a non-core division, restructured some operations and made a number of acquisitions, not all of which have been successful. 

Even though the company gave a positive outlook for 2024, its shares fell on concerns about supply constraints affecting cancer drug Pluvicto, before regaining some ground to trade 2.6% lower at 4 p.m. in Zurich.

Novartis said its 2023 financial and share price performance was “exceptional” as it completed its strategic transformation and raised its full-year guidance three times during the year. Novartis recorded a total shareholder return of 26% for the year, “positioning us in the third place of our global peer group,” a spokesman said, adding: “Year-on-year, this increase is almost entirely performance-driven.” 

It’s still seen as a preferred investor option to crosstown rival Roche Holding AG’s, Jefferies wrote in a note before the results.  

Read More: Swiss Pharma Giants Plot Different Paths for Next Blockbusters

At Roche, Severin Schwan was paid a total of 11.5 million Swiss francs in 2022, his final year as CEO, according to the company’s 2022 annual report.

Both executives of the Swiss pharma companies are paid far less than some of their counterparts in the US. Albert Bourla, chairman and CEO of Pfizer Inc., received about $33 million in total compensation for 2022. 

©2024 Bloomberg L.P.