UK - GlaxoSmithKline is to make substantial changes to its board of executives following sustained pressure from pension fund investors.
The NAPF and the Association of British Insurers have been staunch critics of GSK’s remuneration policies – principally in relation to its chief executive officer Jean-Pierre Garnier, who was looking to award himself a pay package worth £7.5m last year.
Now GSK has bowed to shareholder pressure, promising to look again at the structure of its remuneration board.
GSK chairman Sir Chris Hogg wrote in a letter to the ABI: “We have for some time been actively considering recruitment to the board and as a result I would expect the composition of the board to change quite materially.”
Three executives have been singled out for possible replacement: the American chair of the remuneration committee Paul Allaire; Sir Roger Hurn and Sir Peter Job – both members of the remuneration committee.
But the NAPF said it had not yet received any notification confirming their replacement and GSK declined to comment.
This is the second time in six months that GSK has backtracked proposals in the face of shareholder pressure.
Last year GSK abandoned Garnier’s proposed remuneration package after discussions with shareholders showed opposition to long-term incentive awards.
A company statement said: “After taking account of shareholder views, the company has decided to postpone a decision on this matter and will now take further time to consider the way forward.”
*Pensions Investment Research Consultants targeted Rexam and Hilton over two-year rolling contracts this week.
PIRC also said Hilton executives’ performance targets are not challenging and incentives are “potentially excessive”.
The Rexam annual general meeting wad held yesterday (Thursday) and the Hilton meeting is today.
Kim Gubler says it is time that schemes and administrators reassess SLAs and look at what real people need from their pension schemes and when
The Pensions Regulator (TPR) is focusing on reducing the number of "poorly-run" schemes as it seeks to improve standards across the board.
Prudential Retirement has completed around $2.6bn (£2bn) of reinsurance contracts for UK pension scheme longevity risk since the start of the year, it has disclosed.
Funding standards for DB schemes have increased exponentially over the past decades. Con Keating says such significant overstatement of liabilities will lead to pushback through the courts.