Compensation and benefits

Novartis believes in performance-based compensation

Our associates are critical to our success. Novartis aspires to be an employer of choice, attracting, retaining and motivating top talent globally. Company compensation programs are designed to:

• Align the objectives of our associates with the long-term interests of the shareholders
• Support a performance-oriented culture and meritocracy that allows the company to reward high performing individuals
• Be comparable and competitive with other world-class and industry peer companies

 

 

Base compensation

The base compensation is intended to give each associate a regular and predictable salary that does not depend on the annual performance of the associate or of the Novartis business.Salary levels depend on job characteristics, market competitiveness as well as on the skills of each associate. The salary evolution depends on the individual performance of the associate.

 

 

Variable compensation

Novartis has three variable compensation plans:

• Bonus Plan,
• Novartis Equity Plan "Select" and
• Long-term Performance Plan.

 

Bonus plans

Most associates participate in bonus plans. Under these plans, awards are made each year based on the associate's individual yearend performance rating and company or business unit performance.

 

Novartis Equity Plan “Select”

Annually, 10% of associates worldwide receive equity grants under the Novartis Equity Plan "Select". Participants in the plan can select to receive this incentive in the form of restricted shares (share units) or tradable stock options or a combination of both.

 

Long-term Performance Plan

Within the Novartis Compensation framework, a Long-term Performance Plan has been created and targeted to executives who are in key positions and have a significant impact on the long-term success of Novartis.

Incentive awards under the Long-term Performance Plan as well as awards made under the Equity Plan "Select" intend to align the interest of the associates with the long term interest of shareholders.

 

 

Benefits

The Novartis benefits programs are an integral part of the total compensation policy and strategy and designed to meet the challenges of an evolving competition for talent on a global scale.

These programs are structured to support Novartis' overall business objectives and strategy. Benefits are aligned with local legislation and practices in each country and generally include pension plans, group life insurance, and medical plans. Some programs offer flexible mechanisms to tailor appropriate coverage for current and future needs and are established to provide a sound framework of security for our Novartis associates.