PARIS, Feb 23 (APM) - The French government has said the 4 million euros 'golden hello' for new Sanofi CEO Olivier Brandicourt in consideration for leaving as head of Bayer Healthcare is “incomprehensible”, and called for more “self-discipline” and “decency” in pharma remuneration.
“It is incomprehensible. All these people who explain it is merit, that it is the liberal economy that must achieve the results, that it is risk, taking risks, those people, as soon as they head a company - and clearly they have not taken any risk- they are already sure of receiving remuneration that is really out of all proportion,” government spokesman, Stéphane Le Foll said on the French radio network RTL.
On Friday evening, Sanofi announced Brandicourt, who the day before was appointed CEO in replacement of Chris Viehbacher, would receive a gross fixed amount of 2 million euros on taking up his post on April 2 and an identical fixed amount payable in January 2016, subject to his continued presence (APMMA 41572), (APMMA 41541).
The French group explained the bonus was awarded “in consideration for benefits he gave up on leaving his previous employer”. This practice - known as a golden hello or a golden handshake - is widely found in the U.S., but rarely in France.
Questioned on the need to cap the remuneration of leaders of private companies, Le Foll said: “We did this in state-owned companies so that salaries are capped. Rules need to be reaffirmed, we need moral standards.
“It could be enshrined in the law … but the problem is that these companies are international,” he added. He is also minister of agriculture, agrifood and forestry.
Ségolène Royal, minister of ecology, sustainable development and energy, called on the RMC/BFM television channel for “self-discipline” and “an element of decency” on the part of pharma companies that “live off social security, namely off contributions on salaries”.
“I would like to point out that drugs are reimbursed by the French. It is all the French citizens who pay social security … who will pay the welcome bonuses for a Sanofi boss,” she stressed, adding she “hopes” Brandicourt will give up his bonus. “That would be a minimum,” she said.
Among the unions, the Sanofi CGT central delegate, Thierry Bodin, also strongly criticised the decision taken by the group.
“The ‘golden hello’ was already in force for the latest director, who had received the same amount, but in this case, what is surprising, is that he is to receive the same amount again, at the end of a year. It is clear the shareholders, the board anyway, takes good care of leaders, rather than employees,” he said speaking on France Inter on Sunday.
“Sanofi is the second or third most profitable company in France. It is a company that is in great financial health. On the other hand, these last five years, the management has done away with over 5,000 permanent contracts in France, and thousands of indirect jobs. This year, they had the nerve to propose 0% collective increase, which has angered all the employees,” he added.
gb/aki/hlc
TRY APM Market Access AND GET ACCESS TO THE FULL CONTENT
Interviews with KOLs/senior executives amongst the Regulators, Payers, Health, Medical & Pharmaceutical organisations
Events coverage with a unique focus on Market Access & sustainability of healthcare systems
6 European bureaus : Berlin, Brussels, London, Madrid, Milan & Paris
Ask for a Free trial and get access to the latest stories
Our coverage includes:
- Health Care
- Market Access
- HTA – policies & practices
- European medicine regulations
- Drug safety issues
- Pricing & Reimbursement
- International medicines agencies
If you are a Payer, Pharmaceutical or Consulting professional our premium data will keep you informed on the regulatory, pricing, market access and cost-effectiveness issues that impact all stakeholders.
REQUEST
an initial 10 day temporary access of APM Market Access.
