Ethos regrets that the Board of Directors of Novartis refuses to sponsor the resolution presented by Ethos and eight Swiss pension funds. The resolution resolves that the shareholders be given the right to cast an advisory vote on the remuneration report at the Annual General Meeting of 24 February 2009
On page 133 of Novartis' 2008 annual report published today, the Company announces that the “Board is convinced that the Remuneration Report should not be submitted to a consultative vote by shareholders”. This attitude sharply contrasts with the decisions of the boards of Credit Suisse Group, Nestlé and UBS, which will proactively give a say on pay to shareholders at the 2009 Annual General Meeting.
The refusal of Novartis to support the resolution is regrettable, in particular given the high level of executive remuneration. According to Ethos, the Chairman / CEO Daniel Vasella received in 2008 a total remuneration amounting to CHF 40.3 million (EUR 26.9 million) in market value, including a 92 percent variable part. The 2008 remuneration marks a 20 percent increase over 2007. It should be noted that Novartis disclosed the Swiss fiscal value of the remuneration amounting to CHF 20.5 million (EUR 13.7 million), which is not in line with international best practice.
Ethos urges all Novartis' shareholders to actively support its resolution calling for an advisory vote on the remuneration report.
