Indivior shareholders told to rebel against jailed ex-CEO’s bonus

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Indivior PLC (LON:INDV) is facing a shareholder revolt at its AGM after the company revealed it would honour the bonuses awarded to jailed former chief executive Shaun Thaxter.


A Federal Court sent Thaxter to prison for six months after he pleaded guilty to misrepresentations about the safety of the company’s opioid addiction drug Suboxone.


The bonus awards were made to Thaxter under the company’s long-term incentive plan but two leading shareholder groups, Institutional Shareholder Services (ISS) and Glass Lewis, have advised investors vote against the award.


According to ISS, Thaxter left the company with unvested bonus shares worth more than US$1.5mln currently.


ISS has questioned the remuneration committee decision to classify Thaxter as a ‘good leaver’.


“As a lead executive of the business since 2009, Shaun Thaxter is ultimately accountable for the financial and reputational harm suffered by the company in connection with the mis-selling of Suboxone,” it said.


In a report in the FT, Indivior said the awards were based on Thaxter’s years of service and the absence of any evidence of personal wrongdoing or malfeasance.


Wick Sollers, Thaxter’s lawyer, added: “We believe the determination that Mr Thaxter should be treated as a ‘good leaver’ was entirely appropriate under the circumstances of his case [that involved Massachusetts regulator MassHealth], which established that he was unaware of any wrongdoing when it occurred and authorised corrective action after he learned of the issue.”


Shares in Indivior dropped 1.2% to 151.6p.

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