Should pharma executive pay be linked to global vaccine access?

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Linking Pharmaceutical Executive Compensation to Global Vaccine Access

A significant group of institutional investors, managing assets valued at US$3.5 trillion, has formally urged major pharmaceutical companies to tie executive compensation to the equitable global distribution of Covid-19 vaccines. This initiative, articulated in a letter sent to the boards of Pfizer Inc, Johnson & Johnson, Moderna Inc, and AstraZeneca PLC on January 4, seeks to align corporate leadership incentives with the World Health Organisation's (WHO) roadmap for achieving universal vaccine access. The investors are advocating for this link to be established in a manner that is "meaningful, material, measurable and transparent."
Investor Call for Equitable Distribution

The investors' appeal stems from the stark disparity in global vaccination rates. While wealthy nations are experiencing high vaccination coverage, with many citizens receiving booster shots, the African continent, for instance, has vaccination rates averaging only around 10 per cent. This imbalance contrasts sharply with the WHO's objective of reaching a 70 per cent vaccination rate in every country by July 2022, a target crucial for ending the acute phase of the pandemic. The letter specifically implores the pharmaceutical giants to adopt and integrate the WHO's roadmap for equitable vaccine access into their executive pay structures.
The WHO Roadmap and Investor Expectations

The WHO roadmap outlines several key strategies to promote fairer vaccine distribution. These include encouraging greater participation in international vaccine initiatives and facilitating the licensing and sharing of technology to enable local production of vaccines in various regions. The investors' demand is for executive remuneration packages to be directly influenced by the companies' demonstrable progress in adhering to these principles and achieving global vaccination goals. For example, Achmea Investment Management, a participant in this initiative with US$225 billion in assets under management, has explicitly stated its intention to vote against executive pay packages if a clear link to the WHO roadmap is not established.
Challenges and Company Responses

The global delivery of Covid-19 vaccines has been hampered by a confluence of factors, including production challenges, hoarding by affluent countries, export restrictions, and bureaucratic hurdles. In response to the investors' letter, a spokesperson for AstraZeneca indicated that the company is producing its Covid-19 vaccine on a not-for-profit basis and has directed the majority of its supply to low and middle-income countries. Other vaccine manufacturers like Pfizer, Johnson & Johnson, and Moderna have previously stated their commitment to providing doses to less affluent nations at relatively low prices, though they were not immediately reachable for comment on the investors' specific demands.
Endorsement from Global Health Authorities

The initiative has received strong backing from global health organisations. Peter Singer, Special Advisor to the Secretary General of the WHO, welcomed the investors' action, characterising the unequal distribution of vaccines as a profound moral and economic failure for the world. He emphasised that such disparities not only represent an ethical lapse but also impose a significant drag on the global economy, underscoring the interconnectedness of global health and economic prosperity.

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Should pharma executive pay be linked to global vaccine access?

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