GlaxoSmithKline stave off shareholder rebellion

Bosses of drugs company GlaxoSmithKline headed off a rebellion over the company’s executive pay packages today.

Glaxo chairman Christopher Hogg said that although final figures were unavailable, at least 85% of votes cast were in favour of the company’s remuneration report, while votes cast on all other resolutions exceed 95%.

Investors rejected last year’s remuneration report amid opposition to the proposed pay package of chief executive Dr Jean-Pierre Garnier, who saw his salary rise by 13% to near £2.8m (€4.12m).

This year’s remuneration report was also opposed by lobby group Pensions and Investment Research Consultants and the trade union Amicus, whose officials staged a protest outside today’s annual meeting in London.

Some shareholders at the meeting said salary and benefits packages made by the company to its directors demonstrated “greed and avarice”.

Another shareholder criticised Glaxo for excluding elements such as exchange rates and competition from producers of generic drugs from the criteria used to calculate executive bonuses for superior performance.

But Christopher Hogg said the company believed its executive pay policy was justified.

“I can only say that our duty as a board of directors is to see that the company’s management is paid competitively.”

Glaxo, which makes drugs to treat a range of illnesses including cancer and HIV, employs about 100,000 globally and has Irish operations in Cork, Dublin and Waterford.