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Thursday, October 25, 2018

Novartis links bonuses to ethics in bid to rebuild reputation

John Miller
Originally posted September 17, 2018

Swiss drugmaker Novartis (NOVN.S) has revealed its employees only get a bonus if they meet or exceed expectations for ethical behavior as it seeks to address past shortcomings that have damaged its reputation.

Chief Executive Vas Narasimhan has made strengthening the Swiss drugmaker’s ethics culture a priority after costly bribery scandals or legal settlements in South Korea, China and the United States.

Employees now receive a 1, 2 or a 3 score on their values and behavior. Receiving a 2, which Novartis said denotes meeting expectations, or a 3, for “role model” behavior, would make them eligible for a bonus of up to 35 percent of their total compensation.

Novartis said it began the scoring system in 2016 but details have not been widely reported. Company officials outlined the system on Monday on a call about its ethics efforts with analysts and journalists.

The info is here.