Short Target Sorrento Falls After Holders Pan CEO Pay Awards

Sorrento Therapeutics Inc., a company racing to develop Covid-19 therapies, sank 13% after a second holder revealed it would vote against a handsome pay package for its chief executive.

A proposed pay package would incentivize the biotech company’s CEO Henry Ji by tying a payout to Sorrento’s market capitalization. Ji could get almost 25 million shares if he can boost the stock’s valuation to $5 billion. Sorrento’s market value reached a high of about $4.6 billion around the time the award was first proposed in August. But it has since dipped below $3 billion.

The Florida State Board of ...