Stéphane Bancel, the CEO of Moderna, will be getting a handsome separation payout when he leaves the developing vaccination behemoth. The company’s board of directors has approved a $926 million Golden Parachute for Bancel as his reward for directing Moderna through the successful development and supply of a COVID-19 vaccine. The windfall was revealed in the company’s 2022 proxy statement this week.
Moderna’s revenues increased from $803 million in 2020 to $18.5 billion last year, as the company made and delivered over 807 million doses of its mRNA injection. Moderna expects to make even more money this year, forecasting $22 billion in vaccine sales. Bancel’s “change-in-control” package was worth $9.4 million before the pandemic. Moderna’s star turn, however, changed all of that. His new contract includes shares worth $922.5 million, a $1.5 million severance payment, and a $2.5 million incentive if the company is sold or he is dismissed.
Moderna recently modified its compensation peer group, which is a list of similar companies that a company utilises to ensure that its executive benefits are competitive. Rather than significant biotechs like Alnylam, Sarepta, and Incyte, Big Pharmas like AbbVie, Bristol-Myers Squibb, Eli Lilly, Merck, and Pfizer now make up Moderna’s new upmarket neighbourhood. In 2022, the new peer group will be used to determine the remuneration of Moderna executives.