Novartis shareholders approve all resolutions proposed by the Board of Directors at the Annual General Meeting

  • Patients & Caregivers
  • Healthcare Professionals
  • Society & ESG

  • Shareholders approve 23rd consecutive dividend increase to CHF 2.95 (+4%) per share for 2019; representing a 3.5%1 yield and approximately 54% payout of free cash flow
     
  • Shareholders confirm Dr. Joerg Reinhardt as Chairman of the Board of Directors as well as all other members who stood for re-election; Ms. Bridgette Heller and Mr. Simon Moroney elected to the Board of Directors
     
  • Shareholders approve all other proposals of the Board of Directors, including the 2019 Compensation Report in an advisory vote, as well as the future Board and Executive Committee compensation in separate binding votes

Basel, February 28, 2020 - Novartis shareholders today agreed to the Board of Directors’ recommendations for all proposed resolutions at the Group’s Annual General Meeting (AGM). A total of 1,189 shareholders were present at the meeting held in Basel, representing approximately 59.09% of the issued shares of Novartis.

Shareholders approved the 23rd consecutive dividend increase per share since the creation of Novartis in 1996, with an increase of 4% to CHF 2.95 for 2019. Payment for the 2019 dividend will be made as of March 5, 2020. The dividend for 2019 is an approximately 54% payout of free cash flow, reinforcing the Company’s ongoing commitment to a strong dividend yield.

Annual re-election and election of Members of the Board
Shareholders re-elected Dr. Joerg Reinhardt as Chairman of the Board of Directors, and all members of the Board who stood for re-election, for one year. In addition, Ms. Bridgette Heller and Mr. Simon Moroney were elected as new members to the Board of Directors.

In addition, shareholders re-elected the following members of the Board of Directors to the Compensation Committee for one year: Patrice Bula, Srikant Datar, Enrico Vanni, and William T. Winters. The Committee will be chaired by Mr. Enrico Vanni. Further, shareholders elected Ms. Bridgette Heller as a new member of the Compensation Committee.

Share cancellation
In line with the Board of Directors’ recommendation, the shareholders also approved the cancellation of 60 313 900 shares repurchased under the seventh and under the eighth share repurchase program in 2019 and the reduction of the share capital accordingly by CHF 30 156 950, from CHF 1 263 687 410 to CHF 1 233 530 460.

Votes on Compensation for the members of the Board of Directors and the Executive Committee
In two separate binding votes, shareholders approved the total maximum amount of compensation for the members of the Board of Directors, covering the period from the 2020 AGM to the 2021 AGM, and the total maximum amount of compensation for the members of the Executive Committee for the financial year 2021.

Shareholders also endorsed the 2019 Compensation Report in an advisory vote. It contained enhanced disclosures in many areas, hence, providing greater transparency. The report also informed shareholders of prospective changes to the compensation system. These are based on the constructive feedback received from shareholders, our business strategy, and developing market practice.

For a detailed listing of all resolutions presented at the 2020 Annual General Meeting, please visit: www.novartis.com/agm­