AstraZeneca Chief Executive Pascal Soriot Sees Pay Package Increase to £17.7m
Pascal Soriot, the chief executive of Britain's largest pharmaceutical company AstraZeneca, has received a 6.4% pay rise, bringing his total remuneration to £17.7m for the last year. This increase comes as the drugmaker reports robust profit growth, despite the cancellation of significant investment projects in the UK.
Details of Soriot's Compensation and Company Performance
According to AstraZeneca's annual report released on Tuesday, Soriot's pay package included a salary of £1.5m, annual bonuses totalling £4.3m, and long-term share bonuses valued at £11.6m. This marks an increase from his £16.6m earnings in 2024, though it falls short of the potential maximum package of £25m that could have been achieved if all performance targets were met.
The higher remuneration reflects a substantial 32% rise in AstraZeneca's share price over the past year. The company's revenues grew by 8% to $58.7bn, driven largely by strong sales in cancer treatments, while profits increased by 11%. AstraZeneca currently boasts 16 blockbuster medicines with annual sales exceeding $1bn each and aims to expand this portfolio to 25 by 2030. The firm is also conducting more than 100 late-stage clinical trials to support its growth ambitions.
Controversy and Future Pay Prospects
Despite the company's improved financial performance, Soriot's pay packages have sparked shareholder rebellions in recent years, as he has consistently ranked among the UK's highest-paid chief executives. This year, he is in line for a potential total pay of up to £19.6m, comprising a £1.6m salary, £4.3m in annual bonuses, a £2.1m share grant, and a possible £11.6m bonus from a long-term performance plan.
The news of Soriot's pay rise emerges in a contentious context. AstraZeneca cancelled a planned £450m expansion of its vaccine site in Speke, near Liverpool, and halted a £200m research investment in Cambridge, where its headquarters are located. These decisions followed disputes between the pharmaceutical industry and the UK government over drug pricing and the availability of new medicines on the NHS, such as the breast cancer infusion Enhertu, which remains accessible only privately.
Broader Executive Pay Trends and Soriot's Legacy
The High Pay Centre, an organisation campaigning for fairer pay, reported in August that bosses of Britain's largest listed companies received record-high pay packets for the third consecutive year. For instance, the current and former chief executives of Melrose, Peter Dilnot and Simon Peckham, collectively took home nearly £59m in the previous financial year, primarily due to long-term incentive payments.
Since joining AstraZeneca from Swiss rival Roche in August 2012, Soriot has played a pivotal role in revitalising the company. He rebuilt its then-depleted pipeline of new drugs, successfully fended off a hostile takeover bid from US competitor Pfizer in 2014, and collaborated with the government to roll out one of the first Covid-19 vaccines, developed in partnership with Oxford University. His leadership has been instrumental in steering AstraZeneca through significant challenges and towards sustained profitability.
