By the end of the 2025 fiscal year, Novartis CEO Vas Narasimhan saw his realized compensation climb by 30% to 24.9 million Swiss francs (approximately $32.4 million). This substantial raise followed a year in which the Swiss pharmaceutical giant significantly outperformed its long-term financial and innovation benchmarks.
Driven by Stock Performance and Sales Growth The surge in pay was primarily fueled by long-term incentive plans triggered by the company’s record-high share prices. Over the 2023-2025 cycle, Novartis stock surged by 64%. By early 2026, U.S.-listed shares approached $160, a sharp increase from the $90 mark recorded at the end of 2022.
On the commercial front, 2025 net sales reached $54.5 billion, meeting the board’s designated targets. Key brands such as Entresto, Kisqali, and Kesimpta delivered results “well above expectations.” Furthermore, a portfolio of recent launches involving radioligand and kidney disease therapies exceeded collective sales goals by 14%.
Innovation and Strategic Milestones Novartis demonstrated exceptional R&D productivity, securing 18 key regulatory approvals (against a target of 10) and moving 17 compounds into late-stage clinical development. The company’s core margin hit 40.1%, achieving its strategic public goal two years ahead of schedule.
Upcoming Strategic Challenges Despite the record-breaking year, Narasimhan faces a projected $4 billion revenue gap in 2026 as major treatments lose patent protection in the U.S. Additionally, the integration of the $12 billion acquisition of Avidity Biosciences is expected to impact profit margins in the near term as the company invests in its new biotech pipeline.