Novartis Pharmaceuticals Corporation (NPC) is aware of the recent Democratic Steering and Policy Committee session in the U.S. House of Representatives to discuss the Paycheck Fairness Act and comments made in the media attributed to an NPC associate. The Company would like to reinforce that we are firmly committed to compensating all employees fairly in accordance with all applicable federal and state laws.
We respect the right of our associates to share their perspectives and opinions. We too would like to share some important information that helps put in perspective the comments made in the media to date:
• Terri Kelly’s statements about her pay were litigated in a case that was settled almost two years ago.
• NPC’s position in that case was – and still is – that the difference between the pay of Terri Kelly and her husband was due to undisputed, documented differences in experience, job level, tenure and performance. At all times, Terri Kelly was paid consistent with NPC philosophy on compensation and in accordance with her experience, job level, tenure and performance.
• A 2011 independent analysis of our sales representatives’ compensation shows that there are no statistically significant differences between the pay of men and women sales reps and first level managers at NPC. We will repeat this analysis over the next couple of years to assure pay parity at NPC continues.
• NPC does not have a policy prohibiting employees from discussing their compensation and has never had such a policy since Terri Kelly joined the Company. However, we do recognize that many NPC associates consider their earnings to be sensitive and private so we handle compensation information with discretion.
We value the work of our associates and are committed to their fair and equitable treatment in all aspects of employment, including pay.