Compensation and benefits
Talented teams, performance-based compensation
The success of Novartis depends on the performance and dedication of our Group company associates. We strive to be an employer of choice that attracts, retains and motivates talented and performance-driven people to our affiliates around the world.
Our performance-based compensation policy applies to all associates of Novartis Group companies and is designed to:
- Align the objectives of associates with the interests of our shareholders
- Incentivize associates to create sustainable value for Novartis and its shareholders
- Support a diverse and performance-oriented culture that allows Novartis to reward people who perform well
- Be competitive with world-class companies and industry peers
Base compensation
Each associate is given a fixed salary based on job characteristics, market competitiveness and the associate’s skills. Salary growth depends on the associate’s individual performance and level compared to the benchmark.
Variable compensation
Novartis Group companies have three variable compensation plans:
Short-Term Incentive Plans
Awards under the short-term incentive plans are made each year based on the associate's individual target incentive percentage, individual year-end performance rating as well as on the Group’s or business area's performance.
Associates in certain countries and certain key executives worldwide are encouraged to receive their annual incentive awards fully or partially in Novartis shares instead of cash by participating in a leveraged share savings plan.
Novartis Equity Plan "Select"
Each year, approximately 10 percent of all full-time-equivalent associates worldwide may be eligible for a grant under the Equity Plan “Select”. Grants can be taken in the form of restricted shares, tradable share options or a combination of both, with a vesting period of three years. In some jurisdictions Restricted Share Units (RSU) are granted rather than shares.
Long-Term Performance Plan
The Novartis Long-Term Performance Plan rewards key executives who have a significant impact on the long-term success of the Group by aligning the incentives of key executives to the performance of Novartis.
Benefits
Novartis benefits programs are an integral part of the total compensation policy and strategy and are designed to meet the challenges of the growing, global competition for talent.
These programs support the overall business objectives and strategy of Novartis. Benefits are aligned with local legislation and practices in each country and are established to provide a framework of security for associates.
