The Chairman and Chief Executive Officer of Monsanto, Hugh Grant, received a performance bonus of more than $600 millions for the 2015 fiscal year, announced the multinational agrochemical and agricultural biotechnology corporation this morning.
After being questioned on the subject by investors on Wednesday during Monsanto Second Quarter Fiscal Year 2016 Earnings Conference Call, the company Board of directors released the information this morning, announcing that it had granted Mr. Grant $603.45 million in annual bonus, including $574 million in restricted stock units.
Chief Financial Officer and Senior Vice President, Pierre Courduroux, justified the bonus by saying that despite the fact that the year was a bit disappointing in terms of sales and profits, the company had built some “very solid and concrete bases” for many future projects.
“Some of you might be alarmed by the plummeting profits, but we are extremely optimistic for the future,” Mr Courduroux told reporters.“In the last year, we were victims of ridiculous accusations concerning the Zika virus, but we expect some record profits over the next few years. We’ve made a lot of investments which should start paying up soon, and we’ve decided to reward Mr Grant for the important role that he played in generating these future profits. This guy is a genius, and $600 million is a very small price to pay for such a brilliant mind!”
According to Mr Courduroux, the false accusations made by some South American doctors, which had linked one of their products with the numerous cases of birth defects, are largely responsible for the fall in the company’s profits.
Monsanto announced on Wednesday, that its profit had fallen by 25% in the second quarter compared to the same period a year ago.
According to most experts, the company has suffered as farmers cut back on spending, squeezed by plummeting commodity prices. Its bottom line has also been pressured by the strong dollar and price cuts on products, spurred by competitors.
Despite these setbacks, the leader board of the corporation, which has a long history of working with agricultural producers to boost yields and come up with valuable innovations, seems confident to be able to bounce back over the next few months.