Swiss Pharma Giants Novartis and Roche Boost CEO Compensation Amid Sales Growth

Novartis and Roche, two of Switzerland's largest pharmaceutical companies, have announced increased compensation packages for their CEOs following strong sales performance in 2024. The pay raises come as both companies report significant growth and strategic developments in their respective portfolios.

Novartis CEO Sees 6.9% Pay Increase

Novartis CEO Vas Narasimhan will receive a total compensation package of 14.2 million Swiss francs ($15.7 million) for 2024, representing a 6.9% increase from the previous year. The most substantial change in Narasimhan's compensation comes from a long-term performance-based stock plan for the 2024-2026 cycle, valued at $7.5 million compared to $5.9 million for the 2023-2025 cycle.

Narasimhan's annual incentive pay, based on Novartis' 2024 business performance, decreased slightly to 4.5 million Swiss francs. However, this still represents a 160% payout of the target, as Narasimhan met or exceeded every goal set in the company's performance scorecard.

Novartis reported a 12% year-over-year sales growth at constant exchange rates, with recently launched drugs Leqvio, Scemblix, Lutathera, Fabhalta, and Pluvicto meeting sales targets. The company also signed 24 business development deals in 2024, although the $2.9 billion MorphoSys acquisition faced significant challenges.

Roche CEO Thomas Schinecker's Remuneration Rises 4.6%

Roche CEO Thomas Schinecker's 2024 remuneration package increased by 4.6% to slightly above 10 million Swiss francs ($11.1 million). Schinecker's base salary rose by 7.5% to 3.2 million Swiss francs, while his bonus increased by 6.7% to 3.4 million Swiss francs. Starting in 2024, Roche's CEO will receive the bonus in stock rather than cash.

Roche's sales climbed 7% at constant exchange rates, or 9% excluding COVID-19 products. The company's bispecific eye injection Vabysmo continued its strong performance, generating 3.86 billion Swiss francs in sales. However, the repeated failures of the TIGIT antibody tiragolumab, including in a high-profile non-small cell lung cancer test, presented a challenge for the company.

Throughout 2024, Roche secured 20 major approvals, including six from the U.S., and established 72 new partnerships, including four acquisitions. The company anticipates 12 key pivotal trial readouts in 2025, including four new molecular entities.

Industry Outlook and Strategic Focus

Both Novartis and Roche continue to emphasize growth through innovation and strategic partnerships. Novartis' board noted the company's success in maintaining growth momentum and ensuring successful product launches. Meanwhile, Roche's focus on developing new molecular entities and expanding its pipeline underscores its commitment to long-term growth in the competitive pharmaceutical landscape.

As these Swiss pharma giants navigate the evolving healthcare market, their increased investment in executive leadership signals confidence in their strategic direction and ability to deliver value to shareholders in the coming years.