UK - Pension funds want drugs giant GlaxoSmithKline to explain why its chief executive's pay package is rising by £2.5m while the firm's share price is falling sharply.
The National Association of Pension Funds’ request follows a letter from the company stating its intention to recommend an increase in Jean-Pierre Garnier’s “long-term incentive grants”.
The letter said the move was being made to align its incentive plans more closely with other chief executive officers in its peer group.
NAPF spokesman Andy Fleming said: “We think shareholders will be concerned if the chief executive is getting more money even though share value is going down.
He added: “We spoke to the company late on Monday and we are looking for it to come up with a more detailed explanation of exactly what the reasons and rationale is, behind giving better remuneration given the damage done to shareholder value.”
Earlier this month, the NAPF criticised the BSkyB executive bonus plan which topped £7.4m last year.
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