Total Compensation: $14.154 million
Professional Profile: Joe Jimenez, 53, started his career as a brand manager--but not at a pharma company. The consumer goods veteran started off at Clorox. By the time he joined Novartis' ($NVS) consumer health division in 2007, he had spent years at H.J. Heinz, applying the MBA skills he learned at the University of California-Berkeley's Haas School of Business. Soon after, he took the helm at Novartis' pharma business and stepped into the CEO's office in 2010.
Compensation Breakdown: 2.025 million Swiss francs in fixed compensation, 4.796 million worth of performance shares and 4.75 million in options, 1.37 million francs in variable compensation, 161,200 francs in pension benefits, and in-kind compensation of 128,734 francs. In Swiss francs, his total compensation amounted to 13.228 million. We converted francs to dollars at a $1.07 rate.
Company Performance: Jimenez battled on several fronts last year. With Novartis' top-selling blood-pressure franchise losing exclusivity, there was the usual patent-cliff fight against generic erosion. Then there were the quality-control demons plaguing the consumer-health plant in Lincoln, NE. At home in Switzerland, protesters were railing against the drugmaker's layoff plans. And Novartis' vaccines business continued to flag.
But Diovan's patent loss turned out to be less difficult than it might have been, thanks to a generic rival's failure to launch. Jimenez came to a deal with Swiss protesters to keep one plant open, and a few months later, fired back with plans for a new $550 million manufacturing facility in Stein. As the year wound down, EU regulators backed a key new vaccine, Bexsero. In the end, Novartis' sales were down 3% for the year, a respectable result at a time when most of its Big Pharma rivals were suffering; new products grew by 26%.
Jimenez's fight isn't over, of course. The plant in Lincoln now faces layoffs and refocusing. Profits for 2013 are expected to drop on flat sales; generics are expected to take a $3.5 billion bite out of the top line. And former internal rival Jörg Reinhardt is on his way back from Bayer, taking over as chairman from Daniel Vasella.
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