Stephane Bancel, the CEO of Moderna, has received a significant increase in pay after selling $400 million worth of stock. This comes as the company faces criticism for raising the price of its COVID-19 vaccine from $26 to $130. Despite the backlash, Bancel’s pay was raised by 50 percent, bringing it to $1.5 million, and his cash bonus was also increased. Additionally, his stock value rose by nearly $2 billion, although he plans to donate the proceeds to charity. The company’s stock has seen a 67 percent increase in 2021.
Moderna has faced public outrage for the steep price increase of its vaccine, which represents a massive markup of 10,000 percent compared to the estimated production cost of $1.18 per dose. Senator Bernie Sanders has criticized the company for its corporate greed, stating that it is emblematic of issues in the pharmaceutical industry. Despite this, Moderna has benefited from taxpayer-funded support for the development and testing of its vaccine.
Bancel defended the price increase, stating that the previous price was heavily discounted due to government assistance. He also mentioned that other pharmaceutical companies, such as Pfizer, plan to price their vaccines similarly. However, Pfizer’s decision to raise the price of its shot to $130 has also faced significant backlash.
Moderna, with an estimated profit of $39 billion in 2021, has experienced substantial financial success, aided by government support. Bancel’s pay raise was deemed appropriate by the company, citing increased responsibilities for its executives. The CEO has additionally incurred around $1 million in security expenses due to threats related to the vaccine.
Despite the controversy surrounding the cost of Moderna’s vaccine, the company’s profit margins have increased by 300 percent, amounting to $18.5 million in 2021. Moderna’s board includes three directors who have received over $1 billion in stock. Bancel claimed that he took a pay cut when he joined the company and highlighted the financial security it has provided him and his family.
The majority of Moderna’s executive compensation is in the form of stocks, which has drawn criticism from shareholder advisory firms for not being tied to performance goals. However, the company argues that executives are only rewarded when shareholders also benefit. Bancel’s pay package is directly influenced by the performance of the company’s stock.
In conclusion, Stephane Bancel, the CEO of Moderna, has received a significant raise in pay and seen his stock value rise amidst criticism of the company’s vaccine price increase. The controversy surrounding the cost of the vaccine has not hindered Moderna’s financial success, and Bancel plans to donate the proceeds from his stock sale to charity. The company has defended its pricing decisions, citing government assistance and the pricing strategies of other pharmaceutical companies.
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