Sanofi has taken on Pfizer/Bayer veteran Olivier Brandicourt as it's CEO - with, according to reports, a ‘golden handshake’ worth about $4.5 million. The French government calls this 'incomprehensible' - but one pharma boss disagrees.
The political establishment needs to concentrate on cleaning up its own act and concentrating on their own critical matters, before getting involved with the golden hello offered to Olivier Brandicourt by Sanofi - at least, that's according to Mark Bloomfield, CEO, Polyplus. If politicians continue to involve themselves in the affairs of private companies in the life science sector to satisfy dubious motives, that can do great harm to the development of drugs, and potentially cost large numbers of lives.
Mark believes it is a key responsibility of a business to attract the best possible talent throughout the business, especially at leadership level. All corporations are in competition with each other to recruit – they need to provide the top packages to attract the best talent. Of all appointments, the ‘C level’ roles are the most critical, acting as the flag bearers for the company, leading, managing and reflecting the raison d’etre of entire company.
In addition, Mark points out the CEO role in the pharma industry is unique in it’s own right. The CEO carries the future of the whole company – employees, shareholders, investors and other parties that depend on the success of the company, as with other sectors. However, the CEO also carries the weight of expectation of patients and their families, and the lives of those suffering from fatal, critical or life changing conditions. Mark’s example is the opportunity cost of a bad decision in the high tech sector. This might be a short delay to the delivery of a new smart phone. However, in the pharma sector, this can result in the delay to the delivery of much-needed new drugs for fatal conditions, and can even cost lives.
Mark firmly believes politicians protests might be taken more seriously if they put their own glass houses in order before throwing stones at others. Mark points out that French President Francois Hollande’s government is no stranger to financial, tax and other scandals. This includes those French ministers most vocal about Sanofi’s compensation proposals - Ségolène Royal and Stéphane Le Foll. They hardly need to ask the UK Government, whilst they deal with Sir Malcolm Rifkind and Jack Straw’s ‘cash for access’, and reject a ban on second jobs of MP’s, having earned £7.4 million on second jobs in the past year. The improvement of the European economy, or foreign policy developments might be a better task to focus on for European MP’s.
Those that should have an interest, and a say in Brandicourt’s appointment are the Sanofi shareholders. It is they that will benefit or not from Sanofi profits – Sanofi’s revenue in 2013 was €32.95 billion. However, the ultimate vested interest in the Sanofi CEO appointment are the patients whose lives will be utterly affected by his ultimate success or failure.
Mark as a biotech CEO is no champion for the pharma industry – he has commented widely on how Big Pharma needs to change their approach over a variety of topics. However, politicians whipping up hypocritical hysteria to score points can directly affect the development of drugs that can affect lives long term, and Mark believes that is wrong.