NVS Novartis AG

   By Max Bernhard 
 

Novartis AG (NOVN.EB) said Wednesday that its general counsel, Felix R. Ehrat, is retiring from his position in connection to the company's agreement with Essential Consultants LLC, a shell company owned by U.S. President Donald Trump's former lawyer Michael Cohen.

"Although the contract was legally in order, it was an error. As a co-signatory with our former CEO, I take personal responsibility to bring the public debate on this matter to an end," Mr. Ehrat said, referring to Joe Jimenez, the former chief executive of Novartis.

Novartis agreed to pay Essential Consultants $1.2 million for what it has described as Mr. Cohen's insight into health-care policy.

The Swiss pharma giant disclosed last week that it had signed a one-year contract with Essential Consultants to pay the company $100,000 a month. The contract ended in February.

Novartis Chief Executive Vasant Narasimhan previously called the company's agreement a mistake and denied any involvement.

Essential Consultants is the same company used by Mr. Cohen to direct $130,000 last October to a former adult-film actress, known as Stormy Daniels, to prevent her from discussing an alleged sexual encounter with Mr. Trump. Mr. Trump denies the sexual encounter.

Mr. Ehrat will be replaced by Shannon Thyme Klinger, who currently holds the position of chief ethics, risk and compliance officer.

She will be appointed on June 1, 2018, Novartis said.

"I appreciate Felix's decision even as we regret his departure. We thank him for his contributions to the company as General Counsel," said Joerg Reinhardt, chairman of the board of directors.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

May 16, 2018 01:50 ET (05:50 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.