AstraZeneca Chief Pascal Soriot Could See Pay Package Soar to £28 Million
The drugmaker is considering a new compensation plan that could significantly increase the chief executive's earnings, aiming to align with global pharmaceutical peers.
AstraZeneca is reportedly planning a record-breaking pay package for its chief executive, Pascal Soriot, which could reach up to £28 million if all performance targets are met. Soriot, already the highest-paid CEO in the FTSE 100, earned £17.7 million last year.
This potential increase is part of a broader review of boardroom compensation aimed at closing the gap with global pharmaceutical industry peers. According to Sheri McCoy, chair of AstraZeneca's pay committee, the current maximum pay for top executives presents challenges in recruiting and retaining senior talent. The proposed changes would allow for a substantial increase in earnings, particularly through the long-term incentive plan and annual bonuses, which are increasingly paid in shares amidst a buoyant stock market.
The company has been consulting with shareholders on the new pay plan ahead of a binding vote at next year's annual general meeting. Details are still being finalized, but the proposals are expected to significantly boost Soriot's potential earnings, which currently allow for variable pay up to 850% of his £1.6 million salary through the incentive plan, alongside an annual bonus capped at 300% of his base pay.
AstraZeneca is not alone among FTSE 100 companies considering substantial executive pay increases. Shell, Rolls-Royce, and Unilever are also exploring packages that could see their respective bosses earn over £20 million if performance targets are achieved and share prices rise. Shell's CEO, Wael Sawan, could see his £13.8 million pay package double if he meets his goals.
While UK-based firms are increasing executive compensation, a typical FTSE 100 CEO still earns less than half the average of their S&P 500 counterparts, who made approximately £12.2 million last year. Experts attribute this gap to factors such as US executives often holding combined CEO and chair roles, higher profits and stock market valuations in some US companies, and UK executives valuing non-financial factors like proximity to family.
An AstraZeneca spokesperson stated that it is inaccurate to speculate on future executive remuneration as the next three-year pay policy is still under development.