GlaxoSmithKline plc (“GSK”) has received negative attention on its approach to executive remuneration, mainly due to the alignment of executive pay to that of GSK’s global peers, most of which are large US pharmaceutical companies that are used to setting high pay levels.
The company reached out to its shareholders as it was preparing to renew its policy.
Our manager met the company and provided detailed feedback to the remuneration committee. It encouraged pension contributions for serving executives to be reduced to a maximum of 15% of salary, which is more closely aligned to the contribution level of the wider workforce. Following the consultation process, the company announced that the pension contribution level had been reconsidered. By 2023, it will be brought down to 7% of salary; the same as the company offers to its employees generally.