Roche to review Genentech employees' pay -FT

Oct 13 (Reuters) - Swiss drugmaker Roche Holding AG ROG.VX is likely to review the compensation policy for its staff at U.S. biotech unit Genentech, Chief Executive Severin Schwan told the Financial Times.

Genentech employees are likely to receive a higher percentage of their compensation in long-term stock options compared with the Roche staff, the FT said.

Schwan told the paper that a review of compensation at Genentech would be one of his top priorities next year, and emphasized that new arrangements had to be “entrepreneurial”.

Schwan told the paper that Roche had offered stability by deferring changes to remuneration until 2011.

The paper cited Schwan as indicating that post-2011, Genentech employees would continue to receive a far stronger incentive-based pay than Roche employees in other countries.

During the eight-month-long takeover battle that ended in March, Roche had said it expected Genentech senior management to stay on, but some shareholders and analysts have surmised that the biotech company’s prolific scientists and top managers would view the acquisition as an opportunity to leave. (Reporting by Sakthi Prasad in Bangalore; Editing by Clarence Fernandez)