Drug firm boss under pressure to waive €1.4m bonuses

AstraZeneca boss Sir Tom McKillop is under pressure to waive £1m (€1.4m) in bonuses following a string of setbacks for the drugs giant, it was reported today.

Investors are understood to be seeking the gesture from McKillop after shares in the company fell 30% during 2004 amid concerns over many of its key medicines.

According to the Independent on Sunday, the remuneration committee will meet on Thursday when AstraZeneca reports its full-year results.

These are expected to show that pre-tax profits have risen to $4.7bn (€3.6bn) from $4.2bn (€3.2bn) a year ago.

But investors will seek assurances that AstraZeneca will be able to overcome the setbacks that saw blood-thinning drug Exanta provisionally rejected by US regulators and an admission that its Iressa cancer treatment was unable to prolong the life of patients significantly.

The performance of cholesterol-busting drug Crestor will also come under scrutiny after an employee of the US Food and Drug Administration (FDA) said further tests were required, although this did not reflect the views of the FDA itself.

McKillop is in line to receive almost £1m (€1.4bn) in bonuses based on his 2003 salary if profits have risen in line with City expectations.

But investors believe he should reinvest the bonus in shares in AstraZeneca or give it up completely because it is unaffected by the fall in the stock, the newspaper said.

A separate report in the Sunday Telegraph said McKillop has been approached by the Royal Bank of Scotland to join its board with a view to grooming him as its next chairman.

McKillop was approached about succeeding George Mathewson as chairman of the banking giant when he steps down in around 18 months to two years, the newspaper claimed.

His experience of running a business with a significant exposure to the United States is understood to meet the wishes of investors in RBS, which has expanded rapidly across the Atlantic in recent years through acquisitions.

However, McKillop would be forced to step down from his role at AstraZeneca because the chairmanship of RBS involves a four-day week.