Novartis shareholders elect new board members; approve compensation system changes

At the annual general meeting of Swiss drug major Novartis last Friday, as expected given earlier announcements (The Pharma Letter January 23), shareholders elected Jorg Reinhardt to the Novartis board of directors effective August 1, 2013 for a three year term.

Dr Reinhardt, who left Novartis in 2010 to join Germany’s Bayer, is designated to become chairman of the board replacing Daniel Vasella whose non-compete compensation package has been the subject of much criticism and leading to it its cancellation (TPLs February 18 and 19). Dr Vasella departs immediately and current vice chairman Ulrich Lehner will lead the board on an ad interim basis. However, in honor of his accomplishments for the company, the board has further decided to elect Dr Vasella as honorary chairman.

Dr Lehner commented: "While the board and Dr Vasella agreed to cancel the proposed non-compete agreement and to forgo all compensation linked to it, we are happy in the knowledge that Dr Vasella will remain committed to the company that he has shaped like no other for the next few years.”