Takeda Pharmaceutical Company Limited, a global pharma company headquartered in Japan, has announced that its Board of Directors has approved an executive compensation recoupment policy (“clawback policy”). The policy is aimed at strengthening the company’s commitment to corporate governance. The policy will take effect on April 1, 2020 and apply to short-term incentive compensation beginning with the Fiscal Year 2020 performance year and long-term incentive granted in Fiscal Year 2020 and continue to apply for all subsequent periods.
As per the company’s statement – “The adoption of the clawback policy is part of Takeda’s ongoing efforts to further strengthen its commitment to best-in-class corporate governance and is consistent with Takeda’s industry peers.“
The clawback policy provides that in case of a significant restatement of financial results or significant misconduct, the independent external members of Takeda’s Board of Directors may require Takeda to recoup incentive compensation.
The policy would apply to all or a portion of the compensation received by any member of the Takeda Executive Team, any Internal Director on the Takeda’s Board of Directors, and any other individual designated by the independent external members of Takeda’s Board of Directors within the fiscal year, and the three (3) prior fiscal years, that the need for a significant restatement of financial results or significant misconduct was discovered.
Takeda is one of the largest pharmaceutical companies in Asia and one of the top 20 largest pharmaceutical companies in the world by revenue. In India, the company operates as Zydus Takeda Healthcare Pvt. Ltd.
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