Astra boss says his £19m pay will help UK life sciences

ASTRAZENECA’S chief executive Sir Pascal Soriot has claimed his controversial £19m pay package will help save Britain’s life sciences industry.

Sir Pascal, the FTSE 100 best-paid chief executive last year, said his pay award was vital to ensuring Astrazeneca’s future after shareholders earlier this month voted in favour of the company’s remuneration report and changes to its bonus plan.

The changes increased Sir Pascal’s total reward package to £18.7m, up from £16.9m in the previous year.

Sir Pascal said the increase was “not so much about me as a person”, adding: “I am committed to this company, and I’ve said it before, [but] it really is about making the company competitive and attractive for my successor.”

He added that while he has no plans to leave, his replacement would need to “be offered a role that is attractive in itself but also compensated competitively” in the face of growing competition from the US and China.

Sir Pascal said: “The innovation in our industry is now more and more driven by the United States and China.

“Europe is unfortunately falling behind. As a result, investments in life sciences are taking place in the United States and as a consequence, a lot of the talent and leaders are based in the United States. So it is important for Europe to really refocus on life sciences and invest and create an ecosystem that is attractive.”

His remarks are the latest development in the growing debate over whether UK pay policy is harming the ability of British companies to compete with their US counterparts.

Sir Pascal’s comments came as the London Stock Exchange Group’s shareholders agreed to more than double the maximum pay of chief executive David Schwimmer.

Mr Schwimmer could make as much as £13m this year, meaning he would be in line to become one of the best compensated FTSE 100 bosses.

Yet neither Mr Schwimmer nor Sir Pascal’s pay packages are large enough to come close to the awards of the top 100 best-paid chief executives in the US. Last year Steve Schwarzman, the chief executive of the private equity giant Blackstone, took home $897m (£717m) in pay and dividends, but this was significantly lower than his $1.3bn record award a year earlier.

Meanwhile, Astrazeneca reported a 19pc increase in revenues in the first three months of this year, driven by blockbuster cancer drugs.

Shares in the company closed up 5.9pc at £120.26 following the update.