Finance
Ethos rejects Novartis CEO, management pay as excessive
Published by Global Banking & Finance Review®
Posted on February 24, 2026
2 min readLast updated: February 24, 2026
Quick Summary
Proxy adviser Ethos urges Novartis investors to reject CEO and management pay at the March 6 AGM, calling 2025 compensation of CHF 24.9m excessive despite robust results and share gains.
Ethos urges shareholders to reject Novartis CEO and exec pay as excessive
Novartis AGM Remuneration Showdown
ZURICH, Feb 24 (Reuters) - Proxy advisory firm Ethos on Tuesday urged shareholders of Novartis to reject pay-related items at the pharma company's upcoming annual general meeting, calling the 2025 remuneration for CEO Vasant Narasimhan "particularly excessive".
CEO Compensation for 2025
Narasimhan received a 24.9 million Swiss franc ($32.12 million) compensation package for 2025, up 30% from the previous year, driven by a three-year share price increase of 64%.
Financial Performance Context
Ethos said although Novartis performed well financially in 2025, with profits up 17%, such compensation went too far, noting the CEO's variable remuneration for 2025 was worth 22.3 million francs, or 11.8 times his base salary.
Company Response
Novartis did not immediately reply to a request for comment.
Pay Comparisons in Switzerland and Europe
Ethos calculated that among CEOs of the ten largest companies on the Swiss stock exchange, Narasimhan's pay is more than 50% above the median. The gap widens to 80% when compared with the 15 largest European healthcare firms.
Peer Group Selection Criticism
"We regret that Novartis has chosen to compare itself mainly with North American companies when setting the remuneration of its executives," said Vincent Kaufmann, CEO of Ethos.
Kaufmann said while it is understandable that a company the size of the Basel-based Novartis may pay relatively high salaries in order to retain top talent, he argued the levels reached in recent years were excessive and hard to justify.
Ethos Voting Recommendations
Ethos also recommended voting against the remuneration requested for the members of the executive management for 2027 and for the board of directors at the AGM on March 6.
Board Remuneration Levels
The remuneration for the board of directors is significantly higher than that for the boards of the ten largest Swiss companies by market capitalisation, Ethos said.
Exchange Rate Reference
($1 = 0.7753 Swiss francs)
(Writing by Dave Graham)
Key Takeaways
- •Ethos recommends shareholders vote against Novartis pay-related items at the March 6 AGM.
- •CEO Vasant Narasimhan’s 2025 compensation totals CHF 24.9m, up ~30% year over year.
- •Variable pay reached ~CHF 22.3m, about 11.8x his base salary, amid strong share gains.
- •Ethos says CEO pay far exceeds Swiss and wider European healthcare peers.
- •The group also advises voting against 2027 executive remuneration and the board’s pay.
Frequently Asked Questions about Ethos rejects Novartis CEO, management pay as excessive
1What is the main topic?
Ethos, a Swiss proxy advisory firm, urges Novartis shareholders to reject CEO and management pay proposals at the March 6 AGM, calling the 2025 compensation package excessive.
2How much did the Novartis CEO earn in 2025?
Vasant Narasimhan received CHF 24.9 million in 2025, a roughly 30% increase from the prior year, driven largely by long‑term incentive payouts.
3Why does Ethos oppose the proposals?
Ethos argues the pay level is disproportionate, noting variable pay equals about 11.8x base salary and exceeds compensation at Swiss and broader European peers.
