Big Pharma Is Urged to Report on Links Between Pricing and Pay | Bloomberg

Pharmaceutical companies should be required to regularly report whether there’s a link between drug-pricing strategies and executive-compensation plans, according to a shareholder group.

The Interfaith Center on Corporate Responsibility, a coalition of institutional investors with more than $400 billion of assets, said in a statement Wednesday that it submitted proposals for inclusion at the 2018 annual meetings of Abbvie Inc., Amgen Inc., Biogen Inc., Bristol Myers Squibb Co. and Eli Lilly & Co.

“An executive compensation incentive program reliant on revenue growth solely from drug price increases is a risky and unsustainable strategy,” the group said in the statement. “The investors view executive incentive programs as a governance tool designed to ensure adequate oversight of risk and alignment of corporate strategies with mission.”

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Big Pharma Is Urged to Report on Links Between Pricing and Pay – Bloomberg.

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