Sanofi CEO reshuffle to cost 17M euros

French drug major Sanofi-Aventis has released financial details related to new chief executive Chris Viehbacher replacing Gerard Le Fur (Marketletter September 10), which is set to cost 17.0 million euros ($24.1 million).

The new salary for Mr Viehbacher, formerly of GlaxoSmithKline, is to be 1.2 million euros per annum, with a 150% to 200% bonus to be paid if certain performance-based targets are reached. On his arrival at the company in December, he is set to receive 2.2 million euros in cash, along with 65,000 Sanofi shares, worth 3.2 million euros, and 200,000 stock options, which are yet to be priced.

Dr Le Fur, on the other hand, who was due 8.0 million euros, gas consented to receive only 2.7 million euros in termination pay, half of his contracted amount. He will receive his basic salary until he is replaced by Mr Viehbacher, which last year reached 1.3 million euros. In his new position as scientific advisor to the firm, he will get 50,000 euros per month, with an additional 100,000 euros per month to stay with the firm through to December 2010. He will also retain his stock options and be eligible for a performance-related bonus on his pending pay as CEO, which last year doubled his remuneration.