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Novartis stock plan?









Hello, I heard that Novartis offers a stock plan for employees? Could someone explain how this works? I'm interviewing for a position.

Yes, NPC offers a stock plan. If you are a Representative you have to have a 2/3, 3/2, or 3/3 for your annual performance ratings to receive tradable options and/or restricted stock awards. If you are a Manager, you only have to have a 2/2 or better to receive tradable options and/or restricted stock awards.
 




I big catch though... There is a 3 year vesting period before you can actually exercise any of the stock options. Give that fact and that Novartis has sales force layoffs every year for the past 4-5 years, chances are you will never receive them. It looks nices on the Fidelity statement, but its tough to hang in there long enough to capitalize on them.
 




Yes, NPC offers a stock plan. If you are a Representative you have to have a 2/3, 3/2, or 3/3 for your annual performance ratings to receive tradable options and/or restricted stock awards. If you are a Manager, you only have to have a 2/2 or better to receive tradable options and/or restricted stock awards.

Thank you. How many shares does a Rep typically receive? Also what is 2/3 3/2 and 3/3? Sorry but I am not familiar with these rating systems.
 




I big catch though... There is a 3 year vesting period before you can actually exercise any of the stock options. Give that fact and that Novartis has sales force layoffs every year for the past 4-5 years, chances are you will never receive them. It looks nices on the Fidelity statement, but its tough to hang in there long enough to capitalize on them.

Just cashed out a bunch of stock. Price is good right now and won't get higher
 




Thank you. How many shares does a Rep typically receive? Also what is 2/3 3/2 and 3/3? Sorry but I am not familiar with these rating systems.

The first number is for your Sales results and from what I hear this is purely Objective now. Either you have the numbers or you don't.

The second number is for Values & Behaviors. These are preset standards that they require of whichever level you are at. AS you get promoted (very hard process now) the values increase and become more advanced (makes sense). Manager now has little input to this from what I hear. Managers used to promote Reps they liked and try and push them through (i.e. fight for them). Much different system now.

Hope that helps.
 




Just cashed out a bunch of stock. Price is good right now and won't get higher

Restricted Stock Grants follow the market and are sensitive to the current price of the stock.

Tradable Options, on the other hand, use a formula (Blackmon Scholes??) that predicts the future value of the options and are not nearly as sensitive to the market as actual shares of stock (Restricted Stock Grants).

The value of the grant depends on Performance Ratings and are position dependent (Managers get more than Reps). A Rep with a 3/3 would get more than a Rep with a 3/2. The value may range from 5-6k to 15-20k, dependent upon position and rating.