The pharmaceutical giant said it would increase its annual dividend payout by 20 cents to $3.10 dollars (£2.47) per share for 2024
AstraZeneca has pledged to increase dividends for shareholders ahead of a vote on a £18.7million pay deal for chief executive Pascal Soriot.
The pharmaceutical giant, based in Cambridge, announced on Thursday morning that it would boost its annual dividend payout by 20 cents to 3.10 dollars (£2.47) per share for 2024. This move, according to the company, underscores “the company’s confidence in its performance and cash generation”.
Michel Demare, chairman of AstraZeneca, welcomed the 7% increase to the dividend. He said: “This uplift is in line with our progressive dividend policy, which remains unchanged, and reflects the continuing strength of AstraZeneca’s investment proposition for shareholders.”
In 2023, AstraZeneca saw its profits more than double following robust sales of its cancer treatments. This update comes before AstraZeneca’s annual general meeting on Thursday afternoon. At this meeting, shareholders will be asked to vote on a proposed pay rise for long-standing CEO Pascal Soriot.
Earlier this year, the company confirmed that Mr Soriot received a £16.9million package for 2023, and proposed to increase this to up to £18.7million for this year. Shareholders will decide through a vote whether to approve these pay increase proposals.
However, shareholder advisory groups such as Glass Lewis and ISS have heavily criticised this move. The company declared that the rise would align his bonus “in line with the median target bonus opportunity of his global peer group”.
Earlier this week, one of the firm’s leading shareholders, GQG Partners, remarked that Mr Soriot was “massively underpaid” and warranted the possible salary increase.
