ISS joins Glass Lewis in recommending vote in opposition to J&J CEO’s pay package deal

by akoloy

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Proxy advisory agency Institutional Shareholder Services (ISS) has joined Glass Lewis in recommending traders reject a proposed pay package deal of practically $30 million for Johnson & Johnson Chief Executive Officer Alex Gorsky.

J&J is attracting investor scrutiny as a result of it partially shields Gorsky from some $9 billion in prices over two years which have arisen from lawsuits claiming the healthcare firm fueled the U.S. opioid disaster and allegations of asbestos in its talc child powder.

In a notice to shareholders on Thursday, ISS stated .”..traders could nonetheless anticipate a proof from the corporate of how the compensation committee thought-about the terribly massive litigation prices when making compensation choices.”

Last week, Glass Lewis primarily based its suggestion on the argument that the healthcare firm was shielding its prime executives from the authorized value of poor enterprise choices.

J&J didn’t instantly reply to a request for touch upon the ISS notice exterior common enterprise hours.

The firm has beforehand stated it has at all times put aside sure one-time prices, equivalent to litigation, when calculating inventory awards for executives, an method frequent throughout company America.

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Gorsky’s compensation totaled $29.6 million in 2020, up 17% from the earlier 12 months. A non-binding decision on the pay packages will likely be up for a vote on the firm’s annual normal assembly on April 22.

Gorsky, who grew to become CEO in 2012, has been on the helm of J&J in the course of the opioid abuse and habit disaster, which in line with the U.S. Centers for Disease Control and Prevention claimed practically 450,000 lives within the United States between 1999 and 2018.

In 2019, 50,000 individuals died within the U.S. from opioid associated overdoses, in line with the National Institute of Health.

J&J has denied any half in fueling the disaster. (Reporting by Shubham Kalia and Akriti Sharma in Bengaluru, and Greg Roumeliotis in New York: Editing by Neil Fullick)

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