Individuals face shareholder anger over bonuses from the former CEO who was imprisoned

The London-listed pharmaceutical company, despite being jailed for its role in the American opioid crisis, still maintains the bonus of its former CEO. At its annual meeting this week, Indivior faces the possibility of shareholders’ ups and downs. .

Former CEO Shaun Thaxter was sentenced to six months in federal prison last year and agreed to confiscate it after paying a fine of $600,000. Plead guilty A misdemeanor that caused the company to share false and misleading information about the safety of Suboxone Film with state regulators. The drug is used to treat opioid use disorders.

Despite the company’s reputational damage to Indivior during the legal process, shareholders and the main agency adviser strongly criticized the company’s decision to retain the award granted to Thaxter under its long-term incentive plan.

Institutional Shareholder Services and the influential advisory group Glass Lewis have advised investors to vote against the company’s compensation report and questioned why Indivior does not adopt malicious and rebate clauses that enable companies to reduce or Canceling bonuses or forcing executives to repay bonuses in certain circumstances. Happening.

According to data from the International Space Station (ISS), Thaxter left the company and held more than 1 million outstanding shares worth more than $1.5 million. These shares will not be vested until 2022 and 2023.

ISS stated: “Shaun Thaxter has been the CEO of the business since 2009, and he is ultimately responsible for the financial and reputation losses caused by Suboxone’s improper sales.”

The top 20 shareholders are also critical of the compensation committee’s decision to treat Thaxter as a “good guy” and maintain the award under sentence.

This U.S. opioid epidemic According to the US Centers for Disease Control and Prevention, the disease has caused the loss of about 1 million lives in the past 20 years, because many Americans first indulged in prescription opioids and then in illicit drugs. The U.S. Department of Justice, state attorneys general and local governments have pursued opioid manufacturers in court, hoping to be compensated for the huge health and law enforcement costs incurred in handling this dusty labor.

Indivior stated that the Compensation Committee has decided to allow him to retain his outstanding LTIP award, “based on Mr. Thaxter’s leadership, which has produced positive operating results for many years and has not found any personal negligence or malfeasance.”

Suboxone is used to treat opioid use disorder © George Frey/Bloomberg

Suboxone Film contains buprenorphine and naloxone and is designed to treat opioid addiction. The Justice Department accused Thaxter of requiring employees to develop a strategy to win the drug of choice status with Massachusetts regulator MassHealth. Then, some employees shared false and misleading safety information about the risks of accidental contact with children.

MassHealth subsequently announced that it will provide the drug to children under the age of six under the Medicaid health insurance plan of the United States, which is aimed at low-income people.

Tekst has not been accused of deliberately misleading MassHealth. Texter’s attorney, Wick Sollers, said: “We believe that based on his case, the decision to treat Mr. Texter as a “good leaver” is entirely appropriate. This confirms that he did not realize any impropriety. He has the right to take corrective measures. He immediately took action when he learned of the problem.”

Thaxter is one of the few pharmaceutical company executives to go to jail on allegations related to the opioid crisis. From 2009 to last year, he led the company, and soon after, he pleaded guilty to the charges, including when the company was affiliated with Reckitt Benckiser.

Reckitt paid $1.4 billion Resolve its responsibilities to the United States in terms of Suboxone marketing in 2019. Indivior and its subsidiary Indivior Solutions also agreed to pay $600 million to settle related debts.

Thaxter’s total compensation for fiscal year 2019 was $2.1 million and for 2020 it was $557,300. After leaving in June 2020, he received a one-time salary and benefits of more than $1 million to pay the 12- in his contract. Monthly notification rights.

The International Space Station also recommended that shareholders vote against the re-election of the chairman of the compensation committee, on the grounds that the company “decided to consider Tekst as a good leaver.” . It raises serious questions about its independence and judgment. “

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *