AstraZeneca CEO and Chair Succession Planning Case Study

This case study documents the engagement process between Hermes Equity Ownership Services (EOS) and AstraZeneca regarding the company's long-term sustainability strategy and governance, particularly focusing on CEO and chair succession planning. The study outlines AstraZeneca's ambitious revenue target of $45 billion set in 2014 and the subsequent achievements, including reaching this target in 2023. It details the importance of robust succession planning as integral to maintaining strategic consistency and aligning incentives with long-term goals. The study highlights the appointment of a new chair in 2023 and the ongoing discussions about internal and external candidates for CEO succession. It also addresses concerns raised by EOS regarding the visibility of the succession process and the high levels of variable pay, advocating for transparency and accountability in remuneration policies. The case study emphasizes the significance of effective governance in achieving long-term business objectives.