AstraZeneca chief David Brennan leaves with up to £19m
FORMER AstraZeneca chief executive David Brennan leaves with up to £4.5m (€5.7m) and a pension pot worth £14m despite waiving this year's bonus and the company keeping share awards for 2011 and 2012.
Mr Brennan retired after six years at the helm of pharmaceutical giant after it announced a 38pc drop in first-quarter profits.
Astra revealed on Monday that upon leaving the company he received a lump sum payment of £914,122 in lieu of contractual notice, representing 11 months’ base pay.
He will also be given a share award of £1.5m for 2010.
There is also the possibility of a further £2m depending on the performance of further shares awarded two years ago.
The group said: "The share awards under those plans made in 2010 will vest on a pro rata basis to reflect the period worked since the award of the shares, but only if and to the extent that the relevant performance conditions are met. The estimated gross value of the 2010 awards, after pro rating and taking into account performance to the end of June 2012, is approximately £1.5m."
But the board stated that "share awards made to Mr Brennan in 2011 and 2012 under the AstraZeneca Performance Share Plan and the AstraZeneca Investment Plan should be forfeited".
He has accrued a pension pot of £14m, which will pay him around £970,000 a year, according to the 2011 annual report.
Earlier this year it was revealed that Mr Brennan had seen his total remuneration rise to £9.1m in 2011 despite fears of a looming "patent cliff" caused by a gap in the company's drug development pipeline.
The latest disappointment for the company came in March, when Astra pulled the plug on a potential anti-depressant, incurring costs of £31m. It also faces losing its patents on acid reflux drug Nexium in 2014 and the statin Crestor, Astra's biggest selling product, two years later.
Earlier this year, Mr Brennan dismissed suggestions that investors were growing restless with his management of the business and intended to oust him.
Speaking about his retirement, Mr Brennan said in June that the decision was "totally" his own. "I’d been considering it for a while and given what we’d accomplished in the six-plus years I'd been in the role, it was time to give somebody the chance to take the company to the next level. It was my decision," he said.
His retirement came as the UK's second-biggest drug manufacturer unveiled first-quarter results that showed revenue fell 11pc to $7.3bn.
Tim Anderson, an analyst at Bernstein, told The Sunday Telegraph in June that the company had little in the way of new products to rely on to boost its fortunes in the near future.
“Astra has a mixed track record over many years and I wouldn’t say it’s necessarily because they went down a different path. I just don’t think they were aggressive enough in their investment and probably didn’t value trying to be cutting edge,” he said.
Some analysts have raised questions about what a new chief executive could do differently at Astra, with Justin Smith, an analyst at Oriel, telling The Sunday Telegraph that "the existing chief executive is already aggressively restructuring and taking cost out of the company, returning a huge amount of money to shareholders and executing reasonably well on a clear five-year strategic plan."
Astra revealed late last month that it will will help finance a $7bn deal to buy diabetes treatment maker Amylin.