COMPANY NEWS IN BRIEF
Discovery CEO made millions in 2021Discovery Inc Chief Executive Officer David Zaslav’s total pay package surged to about US$246.6 million in 2021, a filing on Monday showed, with more than three-quarters of that coming from stock options.Zaslav’s compensation rose more than 550% in 2021 and included option awards valued at US$202.9 million.
The one-time options grant extends over seven years, at strike prices of US$35.65 or greater, according to a Discovery spokesman, which means Zaslav would receive a pay-out only after fuelling a substantial surge in the share price. Discovery’s stock closed Monday at US$23.88.
Zaslav negotiated an extension of his employment contract in May, after Discovery announced its US$43 billion acquisition of AT&T’s WarnerMedia. The executive, who will lead the new Warner Bros Discovery, agreed to remain through December 2027.
The deal is on track to close in the second quarter this year. Last month, it passed the US Department of Justice’s antitrust review, clearing another key hurdle toward finishing the deal. -Reuters
SA’s Comair fleet grounded indefinitelySouth Africa’s civil aviation regulator grounded Comair’s planes indefinitely on Sunday over unresolved safety issues, in a move that also affects low-cost airline Kulula and British Airways, leaving hundreds of passengers stranded.
A spokesperson for the South African Civil Aviation Authority (SACAA) said it had extended a 24-hour precautionary suspension of Comair’s operator certificate indefinitely.
The suspension was meant to end on Sunday, but Comair has not adequately addressed all the necessary safety issues, the SACAA said.
“This morning we communicated to them (Comair) that their air operator certificate is now indefinitely suspended until they close all of the findings,” SACAA spokesperson Phindiwe Gwebu told Reuters, effectively grounding the company’s fleet of Boeing aircraft.
Comair said it was unable to confirm when it would start flying again, after working through the night to provide documentation to SACAA following a review of certain policies, systems and procedures. -Reuters
Citigroup expands Russia withdrawalCitigroup Inc said on Monday it would expand its withdrawal from Russia and not take on new clients as it further cuts its exposure to the country, raising the prospect it could take billions of dollars in losses.
Citigroup has exposure of nearly US$10 billion in Russia, the most of any US bank, and had previously warned it could lose nearly half of that in the worst-case scenario. Citigroup declined to comment Monday on the financial impact of the decision.
The bank had already planned to exit its Russia consumer business prior to Moscow’s invasion of Ukraine. It said last week that it was operating that business on a more limited basis while sticking with its plan to sell the franchise.
“We have now decided to expand the scope of that exit process to include other lines of business and continue to reduce our remaining operations and exposure,” Edward Skyler, executive vice president for global affairs said Monday.
The decision means Citigroup will also be giving up its institutional and wealth management clients in Russia, according to a person familiar with the matter. -Reuters
Pfizer to maintain drug supply to RussiaUS drugmaker Pfizer Inc said on Monday it would maintain humanitarian supply of medicines to Russia but would refrain from starting new clinical trials in the country and recruiting patients for ongoing studies.
The Russian invasion has left drugmakers scrambling to find ways for patients enrolled in clinical trials in Ukraine to receive their medicines as millions seek shelter from bombardment and flee to neighbouring countries.
Russia has described its actions as a “special operation”.
Pfizer said it would work with the US Food and Drug Administration and other regulators to transition all clinical trials to alternative sites outside Russia. It will continue providing drugs to the patients already enrolled in studies.
A voluntary pause in the flow of medicines to Russia would be “in direct violation of our foundational principle of putting patients first”, Pfizer said.
“Ending delivery of medicines, including cancer or cardiovascular therapies, would cause significant patient suffering and potential loss of life,” it added. -Reuters
Allianz halts new business in RussiaThe German insurer and asset manager Allianz said on Monday that it had put a stop to insuring new business in Russia and was no longer investing in the nation for its own portfolio.
The announcement by Allianz follows a raft of similar announcements from the financial industry in the wake of Russia’s invasion of Ukraine.
“Our operating entities are no longer underwriting new insurance business in Russia, and are decisively reducing exposure in an orderly manner,” the company said.
Allianz has until now been operating numerous business lines in Russia.
The company’s operations in Russia and Ukraine contributed to 0.2% of group operating profit in 2021, while its overall investment exposure is 0.3% of the group’s own portfolio of 808.5 billion euros (US$885.71 billion). -Reuters