Sanofi – AGM 28 April 2020
On 1 September 2019, Olivier Brandicourt exercised his retirement rights, 5 years after he became head of the company. In addition to an annual pension of €524,766, he also retained the benefit of all the options and performance shares that had been granted to him and not yet vested, with a total combined value of approximately €11.6 million. Thus, his total departure package (retirement + shares and options maintained) amounts to € 21.61 million. However, between Mr Brandicourt's appointment and departure, Sanofi's share price fell by 11%, while the CAC 40 rose by 13.4%. This departure package (and all of the compensation awarded to Mr. Brandicourt since his arrival) therefore seems very generous for an executive who did not perform well.
Mr. Brandicourt has been replaced by Mr. Hudson. In addition to an 8% increase in his fixed salary, Mr. Hudson was also awarded a 2019 bonus representing 150% of his fixed salary, without any performance-related measure, which is unacceptable, even for an executive joining the company (especially if he has been in office for 4 months). He was also awarded Performance Units as Golden Hello. His Performance Units are accompanied by performance conditions measured over 1 and 2 years. Again, this type of practice is unacceptable for a company of the size of Sanofi.
Sanofi is an integrated, global healthcare company focused on patient needs and engaged in the research, development, manufacture and marketing of healthcare products. Two segments make up Co.'s business: Pharmaceuticals and Vaccines. The Pharmaceuticals segment covers research, development, production and marketing of medicines, consisting of flagship products, plus a broad range of prescription medicines, generic medicines, and consumer health products. The Vaccines segment includes research, development, production and marketing of vaccines in five areas: pediatric vaccines, influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and travel and endemic vaccines.
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