An interesting move by Roche in managing the 'new' Genentech
By on Oct 16, 2009
Earlier this week, Severin Schwan, Roches CEO, said that a review of pay at Genentech will be one of his top priorities next year. Apparently, Roche is intent on motivating its newest employees by setting much of their future compensation in the form of long-term stock options.
According to insiders, during the M&A discussions, Roche conceded in those negotiations that they would leave Genentechs compensation system alone until 2011, while also promising that after that date Genentech staff would continue to have access to a much more incentive-based compensation program than Roche employees in other countries.
A clever exception to allow Genentech to maintain its entrepreneurial spirit within the Roche corporate infrastructure or a reason to rein in an inflated pay scale? Too early to tell.