Big pharma Novartis said Tuesday that it named Dr. Klaus Moosmayer as its new Chief Ethics, Risk and Compliance Officer.
He’ll report to the CEO, Vas Narasimhan, and become a member of Novartis’ Executive Committee.
Moosmayer will join Novartis on December 1 and be based at the company’s headquarters in Basel, Switzerland.
He succeeds Shannon Thyme Klinger who recently became Group General Counsel.
Moosmayer has been the Chief Compliance Officer of Siemens since January 1, 2014.
“During this time he played a key role in building up Siemens’ new, globally recognized compliance system,” Novartis said Tuesday.
In 2008, Siemens paid $800 million in penalties and disgorgement to the DOJ and SEC to resolve FCPA offenses. It also paid German enforcement agencies about $800 million in penalties.
Before joining Siemens, Moosmayer practiced law in Germany, specializing in white collar crime, litigation and business law. He holds a JD from Freiburg University.
He’s been chair of the OECD’s Anti-Corruption Taskforce of the Business and Industry Advisory Committee since 2013.
He now serves as vice chair of business compliance for the current G20 presidency, which he formerly chaired during the 2016/17 G20 presidency.
Novartis has about 125,000 employees worldwide. In 2017, it had $49 billion in sales.
In March 2016, Novartis AG paid $25 million to settle SEC charges that it violated the Foreign Corrupt Practices Act when two China-based subsidiaries bribed doctors and others to prescribe its drugs.
According to FCPA Tracker, Novartis disclosed another FCPA-related investigation in July 2016. The company said in later disclosures the investigation by the DOJ, SEC, and the Seoul Western District Prosecutor relates to Greece, Russia, and South Korea.
Novartis said Tuesday it created the “role of Chief Ethics and Compliance Officer, reporting to the CEO” in 2014.
“On April 1, 2018, the role was further expanded to include oversight of all risk management functions and became a member of the Executive Committee of Novartis.”
CEO Vas Narasimhan said: “Klaus has extensive experience in leading compliance for large global organizations and is internationally recognized in his field. As part of my executive leadership team, I am very confident that he will play a significant role in helping us to further define and shape our approach to ethics, risk and compliance in the coming years.”
Moosmayer said: “It is a great honor for me to be given the opportunity to join Novartis. Society has high expectations of the pharmaceutical industry and rightfully so.”
Richard L. Cassin is the publisher and editor of the FCPA Blog.