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Individuals Face Shareholder Anger Over Bonus For Former CEO Imprisoned

Indivior was imprisoned for his role in the US opioid crisis, but this week’s annual meeting after a London-listed pharmaceutical company maintained a bonus to its former CEO. Faces the prospect of a shareholder rebellion.

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

Shareholders and major deputy advisers have vehemently criticized the company’s decision to retain the awards given to Taxter under a long-term incentive plan, despite the damage to the individual’s reputation due to the proceedings.

Institute Shareholder Services and an influential advisory group, Glass Lewis, encourages investors to vote against the company’s payroll reports, allowing companies to reduce or cancel bonuses, or executives. Situations wondering why they did not apply the Mars and Clawback provisions that allow them to repay them in a particular time period.

According to the ISS, Saxter has left the company with more than one million outstanding shares, worth more than $ 1.5 million and will not be vested until 2022 and 2023.

The ISS states: “As the lead executive of the business since 2009, Sean Taxter will ultimately be liable for any financial and reputational damages the company suffers in connection with the mis-sale of Suboxone.”

The top 20 shareholders were also critical of the Compensation Committee’s decision to treat Taxter as a “good withdrawal” and maintain the award despite imprisonment.

The· U.S. opioid epidemic According to the US Centers for Disease Control and Prevention, many Americans have lost their lives in the last two decades as they first depended on prescription opioids and then on illegal versions of the drug. It was. The US Department of Justice, the State Attorney General, and local governments have tracked opioid makers in court hoping to get compensation for huge health and law enforcement costs to deal with fallout.

Indivior states that the Compensation Committee holds an outstanding LTIP award “based on Mr. Taxter’s leadership, which has produced good business performance over many years, and no personal or fraudulent discoveries.” Said decided to allow.

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

Suboxone Film, which contains buprenorphine and naloxone, is designed to treat opioid addiction. The Justice Department has accused Massachusetts regulator MassHealth of asking employees to devise a strategy for Taxter to achieve priority drug status. Later, some employees shared misleading safety information about the risk of accidental exposure of children.

MassHealth later announced that it would provide access to the drug to patients with children under the age of 6 who received Medicaid, a US government-sponsored health insurance program for low-income earners.

Thaxter was not accused of deliberately misleading Mass Health. Tuckster’s lawyer, Wick Solars, said: Action after he learns of the problem. “

Saxter is one of the few pharmaceutical company executives to be put in jail for charges related to the opioid crisis. He led the company from 2009 to last year, just before pleading guilty to the indictment, including when he was part of Reckitt Benquiser.

Reckitt Benkeiser paid $ 1.4 billion To resolve US responsibility for Suboxone marketing in 2019. Indivior and its subsidiary Indivior Solutions have also long agreed to pay $ 600 million to settle the associated debt.

Saxter paid a total of $ 2.1 million in fiscal year 2019 and $ 557,300 in 2020. After leaving in June 2020, he received a lump sum of over $ 1 million in lieu of salary and profits to cover the contractual 12-. Qualification for notification of the month.

The ISS also advised shareholders to vote against the re-election of the compensation committee chairman, insisting on the company’s “decision to treat Taxter as a good turnover.” .. .. It raises serious questions about its independence and judgment. “

Individuals Face Shareholder Anger Over Bonus For Former CEO Imprisoned

Source link Individuals Face Shareholder Anger Over Bonus For Former CEO Imprisoned

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