Novartis’ outgoing chief to forgo $78-million exit pay

BERN: Novartis and outgoing chairman Daniel Vasella ended an agreement that would have paid him as much as $78 million to keep him from working for rival drugmakers, a payout that unleashed criticism as Swiss voters weigh a referendum that would curb executive compensation.

The accord provided for a maximum annual payment of 12 million Swiss francs ($13 million) a year for six years, Novartis said. “I have understood that many people in Switzerland find the amount of the compensation linked to the non-compete agreement unreasonably high, despite the fact I had announced my intention to make the net amount available for philanthropic activities,” said Vasella.

Swiss shareholder rights groups had said the agreement should be scrapped after the size of the payoff was reported by a Swiss blog.