RPT-Sanofi faces AGM row over cost of firing and hiring CEOs

Fri May 1, 2015 4:31am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Repeats APRIL 30 story, no change to text)

* Investor group opposes resolutions that approve payments

* New chief's package also criticised by government

* Sanofi says opposition to both deals a "real error"

By Andrew Callus

PARIS, April 30 (Reuters) - Drugs group Sanofi, which sacked its chief executive last year and appointed a new one in February, has appealed for shareholder loyalty as it seeks to head off a potential rebellion over millions of euros in payments to both men.

Investor advisory group ISS has recommended a vote against two resolutions that would approve those payments at the French company's annual general meeting (AGM) on Monday.

In a letter to shareholders on its website, the company said: "If Sanofi is taking the initiative today of contacting you directly, it is because these recommendations do not reflect a simple difference of opinion; they reflect a real error in analysis by ISS."

One of the ISS objections relates to approval of a joining bonus, a giant pension pot and other terms for new CEO Olivier Brandicourt. The second covers non-compete and confidentiality severance payments for his predecessor, Chris Viehbacher.   Continued...