Novart's ceo's annual salary fell to $11.61 million last year as a result of the outbreak

Coco pharmaceutical giant Novarma's 2020 sales have been hit by the COVID-19 pandemic, and chief executive Vas Narasimhan's annual compensation has been hit.
's latest annual financial details show that Mr Narasimhan's pay in 2020 will be 10.38 million Swiss francs ($11.61 million), down from 11.44 million Swiss francs in 2019 and down about 10 percent from a year earlier.
although the financial results indicated that Narasimhan's base salary was 5.5 per cent higher than in 2019, the decrease in total final compensation was due to year-end bonuses, much of which were tied to Novart's 2020 financial results.
like other biopharmaceutical companies, Novarma has slowed down with the ad-19.
2020, the Swiss drugmaker achieved total sales of $48.7 billion, the only value below the performance target set by Narasimhan's bonus.
is not an easily negligible number, accounting for 18 per cent of sales on his bonus scorecard.
also performed well on other financial measures, namely operating income and free cash flow.
this has also been demonstrated and rewarded in 2019, when Novart exceeded all expectations in terms of group sales, operating income and free cash flow.
addition, Novart's clinical and regulatory progress in 2020 has not met the standards, with the COVID-19 pandemic again being the main cause;
week, Entresto added an adaptation to the shot fraction that retains heart failure in patients, but it's a little late.
decision by the U.S. Food and Drug Administration (FDA) was apparently later than Novarma's board expected because of data delays related to COVID-19.
same time, gene therapy Zolgensma also encountered an obstacle in its roll-out to elderly patients with spinal muscular dystrophy, largely because some clinical trials of the drug's intra-drug preparations were suspended. on the
side, Novarma did win FDA approval for Tabrecta (capmatinib) treatment for patients with MET exon 14 mutant non-small cell lung cancer, ahead of rival Merck's Tepotinib.
's new CD20 targeted antibody Kesimpta (ofatumumab, ofofatoumab) was also introduced during the COVID-19 pandemic, but entered the crowded market for multiple sclerosis treatments, apparently with some impact on sales.
2019 salary, Narasimhan chose bonuses related to "building trust with society" - a measure that involves ethical standards, drug pricing and other social values.
decision came after Novarma's AveXis division, now known as Novarma's Gene Therapy division, exposed tampering with animal test data in Zolgensma's application and delayed reporting it to the FDA.
2020, Novarid's board found that Narasimhan's management team's performance was "significantly higher" than their ethical goals.
include resolving a "marathon" long-running legal battle over whistleblower kickback allegations.
mid-2020, the company agreed to pay more than $700 million to cover claims that it used speaker programs as a cover to pay rebates to doctors in exchange for prescriptions.
also introduced a new code of ethics in September 2020 to regulate marketing practices.
total, Novart's board paid Narasimhan a total of 2.64 million Swiss francs in annual incentive compensation, which is exactly the same as its target amount.
, however, it is common for chief executives of large biopharmaceutical companies to win higher-than-target bonuses, such as Narasimhan's 160 per cent target incentive bonus of 4.02 million Swiss francs in 2019.
2020 equity grants, mostly from long-term incentives, amounted to CHF 5.71 million.
the grants would not be assessed until the end of 2022, when he would be paid twice that amount.
year, Novart's sales growth has been below target due to the COVID-19 pandemic.
its relative total shareholder returns are only 11th out of 15 groups.
contrasts with the decline in Mr Narasimhan's 2020 pay package, his real take-in salary rose to 12.72 million Swiss francs ($14.19 million) from 10.62 million Swiss francs in 2019.
mainly because the long-term incentives he received when he became Novart's chief executive in February 2018 far exceeded those he received when he became Novart's director of research and development.
these large grants will be assessed again this year.
long-term incentives for Narasimhan have doubled to 8.05 million Swiss francs in 2020, up 126 percent from 4.02 million Swiss francs in 2019.
source: Novartis CEO's 2020 pay drops to $11.6M, no thanks to COVID-19's drag on sales