Moderna CEO Stefan Bansel

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Moderna’s board of directors approved a golden parachute for CEO Stefan Bansel worth more than $ 926 million at the end of last year, up from $ 9.4 million in 2019, before Covid-19 turned the world upside down.

The value of the so-called Bancel control change package varies, as most of it, $ 922.5 million, is in shares of the biotech company, which changed significantly during the pandemic along with the company’s progress in production. the vaccine to fight it. Bancel’s exit package also includes $ 1.5 million in cash compensation and a $ 2.5 million bonus if the company is sold and terminated.

Shares of Moderna reached an all-time high of $ 497.49 on August 10, shortly before the Food and Drug Administration cleared boosters of its hit Covid vaccine for vulnerable people. But they traded at $ 253.98 on Dec. 31, when the package was valued, and have since fallen about 45 percent to about $ 140 a share this week.

Even with this reduced share price, his exit package – which only becomes a reality if the company is sold and he loses his job – kills his eyes. Moderna did not respond to requests for comment.

The value of the golden parachute was revealed on Wednesday in the company’s annual proxy report, which describes in detail the compensation packages for the company’s highest paid executives. The documentation shows the rewards for the executives of the young biotech company, where most of the pay is rooted in the company’s volatile capital.

His total compensation awarded for 2021 is $ 18.2 million, an increase of 41% compared to 2020. Bansel’s compensation last year included $ 15 million in prizes and stock options, as well as a bonus of $ 1.5 million. dollars in addition to his salary of $ 990,385. Moderna spent an additional $ 661,000 on bodyguards for Bansel and his family last year.

Moderna President Stephen Hoge’s total compensation was a small part of his other awards. He cashed $ 165.9 million in stock options in 2021 in addition to his regular compensation. Chief Technical Officer Juan Andres similarly cashed in $ 194.3 million in options beyond his usual salary.

Moderna, little known outside of biotechnology circles before the pandemic, had a hit in 2021. The biotechnology company turned to profitability because of the success of its vaccine for the first time last year. Moderna posted a net profit of $ 12.2 billion after reporting a loss of $ 747 million in 2020. Moderna’s share price rose 143% in 2021 as the company successfully launched its two-dose Covid vaccine.

The vaccine remains the only commercially available Moderna product, although the company is also developing vaccines to fight influenza and other infectious diseases. Moderna sold $ 17.7 billion of its photos in 2021, representing almost all of the company’s revenue. Moderna anticipates sales of $ 19 billion for 2022 based on signed sales agreements with governments around the world.

Hoge’s total compensation of $ 7.8 million includes prizes for shares and options worth a total of $ 6 million and a bonus of $ 819,000 on his salary. Hoge’s total compensation is a 48% increase over 2020.

Andres received a $ 6.6 million total salary, with $ 5 million in rewards and options, and a $ 756,000 bonus on his salary. Its total compensation has increased by 55% compared to 2020.

Chief Financial Officer David Meline received a total salary of $ 5.2 million, including $ 4 million in rewards and stock options, as well as a $ 560,000 bonus to his salary. Melin’s total compensation fell by 44% compared to 2020.

Moderna fired its chief commercial officer, Corinne Le Goff, last year. In its proxy report, the company said it was looking for someone with more experience in consumer health. Le Goff received $ 1 million in damages.

Moderna has been sharply criticized by activist groups such as Oxfam for benefiting from the vaccine, while doing no more to share its technology with poorer nations. Oxfam America, which owns 376 shares of Moderna ordinary shares, has submitted a proposal to the annual shareholders’ meeting to assess the feasibility of transferring the intellectual property to the biotechnology company to boost vaccine production in the developing world. Moderna will hold its meeting on April 28.

“We believe that Moderna’s reaction, which does not share the information needed to produce the vaccine in low- and middle-income countries, could damage its reputation, jeopardize its social license and undermine relations with the US government.” says Oxfam’s proposal.

Moderna’s board of directors called on shareholders to vote against the proposal. The board, in its rebuttal, argued that the Oxfam recommendation would have a negative impact on the safety and quality of the vaccine, as well as long-term confidence in the information RNA technology used by the vaccines.

Moderna is currently in a patent dispute with the National Institutes of Health, which helped develop the vaccine over the technology behind the vaccines. White House Chief Medical Adviser Dr Anthony Fauci told reporters last week that the NIH would license the technology worldwide if it won the Moderna dispute.

The Moderna board said the company had agreed to deliver 650 million doses to Covax, an international alliance that promotes better access to Covid vaccination in lower- and middle-income countries. Moderna also said it would not enforce its Covid patents during the pandemic. The biotech company also reached a preliminary agreement with Kenya to build vaccine production in the East African nation to support immunization in Africa.