Hollinger

John Gapper

Novartis has done the right thing by scrapping its proposed payment of up to $78m to Daniel Vasella, its outgoing chairman, not to compete against the Swiss pharmaceuticals company. It raises questions not only about Swiss corporate governance but the entire principle of non-compete deals.

Mr Vasella was a dynamic and effective chief executive of Novartis but there is no obvious reason why he needs an extended non-compete agreement any more than another retiring chairman or corporate executive. Read more