Shareholders approve all proposed resolutions of Novartis Board of Directors
(Thomson Reuters ONE) -
Novartis International AG /
Shareholders approve all proposed resolutions of Novartis Board of Directors
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The issuer is solely responsible for the content of this announcement.
* Shareholders approve 14(th) consecutive dividend increase to CHF 2.20 (+5%)
per share for 2010, representing a payout of approximately 55% of net income
from continuing operations, marking continued increase in the dividend per
share since the creation of Novartis in 1996
* Dr. Enrico Vanni elected as new member of the Novartis Board of Directors
for a three year term
* Mrs. Ann Fudge. Mr. Pierre Landolt and Dr. Ulrich Lehner re-elected to the
Novartis Board of Directors for three year terms
* Novartis reaffirms Group outlook
Basel, February 22, 2011 - Novartis shareholders today followed the Board of
Directors' recommendations for all proposed resolutions at the Group's Annual
General Meeting. Shareholders approved the fourteenth consecutive dividend
increase of 5% to CHF 2.20 for 2010.
A total of 2,160 shareholders were present at the meeting held in Basel,
representing 1,23 shares or 46.5% of the 2,64 billion issued shares of Novartis.
"2010 was shaped by repercussions from the global financial crisis and
considerable currency turbulence. Despite these difficult conditions, Novartis
was very successful. Our long-term strategy focused on innovation and an
attractive business portfolio once more has produced excellent results. The
ability to repeatedly launch new and better products, and thus establish robust
market positions, is decisive for the sustainability of our success. We
demonstrated both of these core competencies last year. New and recently
launched products were a key growth driver in 2010 and hold more promise for the
future. Joe Jimenez, our new CEO since February 2010, has successfully continued
this strategy and launched new initiatives to improve productivity. His
nomination has proven to be right," said Dr. Daniel Vasella, Chairman of
Novartis. "While today's consultative shareholder vote has given support to the
Novartis compensation system, it also shows today's societal concern over
executive compensation. As in the past, Novartis will continue its efforts to
proactively implement proven best corporate governance standards."
In 2010, shareholders approved the introduction of a consultative vote on the
compensation system in the articles of incorporation. This was the first non-
binding vote by shareholders on the compensation system. The next vote on the
compensation system is scheduled in three years allowing shareholders to take a
longer-term view when examining the sustainability of the compensation system,
unless significant changes to the compensation system are introduced.
Sustainable compensation systems are harmonized with multi-year business plans,
and only attain their full effect when used unchanged for several years, so they
are understood by all employees. Today's consultative vote shows the Novartis
compensation system is supported by the majority of our shareholders. The Board
of Directors regularly reviews the compensation plans and levels and will
evaluate how we can further ensure that our compensation system drives
sustainable performance and aligns the interests of associates with those of our
shareholders. Novartis has been a leader in corporate governance practices and
in 2010 was the first large, listed Swiss company to include a consultative vote
on its compensation system in its articles of incorporation. In 2009, Novartis
also established a Risk Committee to oversee enterprise risk management
processes and systems, and is progressively including 'clawback provision' for
incentive compensation in employee contracts.
Shareholders approved a dividend payment of CHF 2.20 per share for 2010 compared
to CHF 2.10 in 2009, representing a payout ratio of approximately 55% of net
income from continuing operations. Payment for the 2010 dividend will be made
with effect from March 1, 2011.
The Group confirmed expectations for 2011 to be a year of continued progress in
delivering its strategic priorities continuing to drive innovation, growth and
productivity across its businesses implementing its strategy to meet the growing
needs of patients and aging societies worldwide through its healthcare
portfolio. Novartis further confirmed its guidance for the year and barring
unforeseen events, expects to maintain momentum in 2011 and increase Group
constant currency sales growth around the double-digit mark. With the continuing
drive to generate productivity improvements across the Group, Novartis aims to
improve constant currency core operating income margin while investing for the
future. In addition, in 2011, the company expects the full effect of Alcon
acquisition accounting to result in amortization of intangible assets of
approximately USD 2.0 billion. Pharmaceuticals is expected to deliver sales
growth in low- to mid-single-digits for 2011, driven by continued growth of the
recently launched products and volume growth in emerging markets. Reported sales
growth will be lower as a result of the combined effect of price reductions seen
in 2010, the full impact of healthcare reform in the US and generic competition.
In addition, for Sandoz, sales growth of around mid-single-digits is expected.
Shareholders elected Dr. Enrico Vanni to the Novartis Board of Directors for a
three year term. Dr. Vanni, a Swiss citizen, has more than 30 years of
healthcare management experience. He is a chemical engineer and graduated from
the Federal Polytechnic School of Lausanne, Switzerland and holds a PhD
(Doctorate in Science) from the University of Lausanne. His background also
includes an MBA from INSEAD in Fontainebleau, France. Dr. Vanni managed the
Geneva Office of McKinsey&Company from 1988 to 2004. His consulting activities
mostly covered companies in the pharmaceutical, consumer and finance sectors. He
was head of the European pharmaceutical practice for McKinsey&Company and served
as member of the Partner review committee of the firm. He is an independent
consultant and member of three company boards of directors, including Alcon,
Inc.
Shareholders also re-elected Mrs. Ann Fudge, Mr. Pierre Landolt and Dr. Ulrich
Lehner for a three year term each to the Novartis Board of Directors. Alexandre
Jetzer-Chung and Hans-Joerg Rudloff will retire from the Board as they have
reached the statutory age limit. The Board of Directors and management team of
Novartis thank Mr. Jetzer-Chung and Mr. Rudloff for their many years of
distinguished services on the Novartis Board of Directors.
Disclaimer
These materials contain forward-looking statements that can be identified by
terminology such as "outlook," "strategy," "promise," "will," "sustainable,"
"expectations," "strategic priorities," "guidance," "expects," "aims,"
"expected," or similar expressions, or by express or implied discussions
regarding potential future sales or earnings of the Novartis Group or any of its
divisions; or by discussions of strategy, plans, expectations or intentions. You
should not place undue reliance on these statements. Such forward-looking
statements reflect the current views of the Group regarding future events, and
involve known and unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any future results, performance
or achievements expressed or implied by such statements. There can be no
guarantee that the Novartis Group, or any of its divisions will achieve any
particular financial results. In particular, management's expectations could be
affected by, among other things, unexpected regulatory actions or delays or
government regulation generally; unexpected clinical trial results, including
additional analyses of existing clinical data or unexpected new clinical data;
the Group's ability to obtain or maintain patent or other proprietary
intellectual property protection; disruptions from the Alcon 77% implementation
and the expected merger making it more difficult to maintain business and
operational relationships, and relationships with key employees; unexpected
product manufacturing issues; uncertainties regarding actual or potential legal
proceedings, including, among others, litigation seeking to prevent the merger
from taking place, product liability litigation, litigation regarding sales and
marketing practices, government investigations and intellectual property
disputes; competition in general; government, industry, and general public
pricing and other political pressures; uncertainties regarding the after-effects
of the recent global financial and economic crisis; uncertainties regarding
future global exchange rates and uncertainties regarding future demand for our
products; uncertainties involved in the development of new pharmaceutical
products; the impact that the foregoing factors could have on the values
attributed to the Group's assets and liabilities as recorded in the Group's
consolidated balance sheet; and other risks and factors referred to in Novartis
AG's current Form 20-F on file with the US Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated or expected. Novartis
is providing the information in these materials as of this date and does not
undertake any obligation to update any forward-looking statements as a result of
new information, future events or otherwise.
About Novartis
Novartis provides healthcare solutions that address the evolving needs of
patients and societies. Focused solely on healthcare, Novartis offers a
diversified portfolio to best meet these needs: innovative medicines, cost-
saving generic pharmaceuticals, preventive vaccines, diagnostic tools and
consumer health products. Novartis is the only company with leading positions in
these areas. In 2010, the Group's continuing operations achieved net sales of
USD 50.6 billion, while approximately USD 9.1 billion (USD 8.1 billion excluding
impairment and amortization charges) was invested in R&D throughout the Group.
Headquartered in Basel, Switzerland, Novartis Group companies employ
approximately 119,000 full-time-equivalent associates (including 16,700 Alcon
associates) and operate in more than 140 countries around the world. For more
information, please visithttp://www.novartis.com.
# # #
Novartis Media Relations
Central media line : +41 61 324 2200
Eric Althoff Beth Calitri
Novartis Global Media Relations Novartis Global Media Relations
+41 61 324 7999 (direct) +41 61 324 7973
+41 79 593 4202 (mobile) +41 79 523 0198
eric.althoff(at)novartis.com beth.calitri(at)novartis.com
e-mail: media.relations(at)novartis.com
For Novartis multimedia content, please visit www.thenewsmarket.com/Novartis
For questions about the site or required registration, please
contact:journalisthelp(at)thenewsmarket.com.
Novartis Investor Relations
Central phone: +41 61 324 7944
Susanne Schaffert +41 61 324 7944 North America:
Pierre-Michel Bringer +41 61 324 1065 Richard Jarvis +1 212 830 2433
Thomas Hungerbuehler +41 61 324 8425 Jill Pozarek +1 212 830 2445
Isabella Zinck +41 61 324 7188 Edwin Valeriano +1 212 830 2456
e-mail: investor.relations(at)novartis.com e-mail:
investor.relations(at)novartis.com
--- End of Message ---
Novartis International AG
Postfach Basel
WKN: 904278;ISIN: CH0012005267;
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Source: Novartis International AG via Thomson Reuters ONE
[HUG#1491423]
Unternehmensinformation / Kurzprofil:
Datum: 22.02.2011 - 18:00 Uhr
Sprache: Deutsch
News-ID 51799
Anzahl Zeichen: 14149
contact information:
Town:
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Kategorie:
Business News
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