GSK plum­mets to bot­tom of in­dex

Yorkshire Post - Business - - FRONT PAGE -

SUR­VEY: A re­cent bribery scan­dal and ex­ces­sive pay poli­cies have sent pharma gi­ant Glax­oSmithK­line to the bot­tom of the In­sti­tute of Di­rec­tors’ (IoD) cor­po­rate gov­er­nance sur­vey.

The third an­nual Good Gov­er­nance In­dex ranked GSK as the worst com­pany among Lon­don’s largest listed firms.

A RE­CENT bribery scan­dal and ex­ces­sive pay poli­cies have sent pharma gi­ant Glax­oSmithK­line to the bot­tom of the In­sti­tute of Di­rec­tors’ (IoD) cor­po­rate gov­er­nance sur­vey.

The third an­nual Good Gov­er­nance In­dex (GGI) ranked GSK as the worst com­pany among Lon­don’s largest listed firms when mea­sured against 47 in­di­ca­tors in five broad cat­e­gories in­clud­ing board ef­fec­tive­ness, au­dit and risk/ex­ter­nal ac­count­abil­ity, re­mu­ner­a­tion, as well as share­holder and stake­holder re­la­tions.

IoD deputy chair­man Ken Olisa high­lighted that GSK has had “lots of is­sues” in re­cent years, in­clud­ing a scan­dal that al­legedly saw it make il­le­gal pay­ments to doc­tors in China in a bid to boost sales, as well as con­tro­versy over ex­ec­u­tive pay af­ter for­mer chief Sir An­drew Witty saw his salary surge de­spite a drop in earn­ings.

How­ever, Mr Witty’s suc­ces­sor Emma Walm­s­ley has since been handed a to­tal pay pack­age worth around 25 per cent less than her pre­de­ces­sor’s to­tal fol­low­ing a re­mu­ner­a­tion re­view.

Hav­ing been given “gran­u­lar” data on the rea­son be­hind their rank­ing, Mr Olisa said the GSK board should “go through all of the fac­tors... and say, do we agree with what the IoD have said and if we do agree with it, what are we do­ing about fix­ing it? Be­cause that’s re­ally what we’re try­ing to make hap­pen here.”

Other firms at the bot­tom of the rank­ing in­cluded Car­ni­val, G4S, An­glo Amer­i­can and ASOS.

Drink gi­ant and Guin­ness owner Di­a­geo was dubbed the best gov­erned blue chip firm, fol­lowed by Aviva, GKN, and Bar­clays.

The UK bank­ing firm ranked highly de­spite a re­cent scan­dal that saw chief ex­ec­u­tive Jes Sta­ley face a reg­u­la­tory in­ves­ti­ga­tion af­ter he breached rules by try­ing to iden­tify an in­ter­nal whistle­blower.

While the Good Gov­er­nance In­dex counts em­ployee pro­tec­tion and whistle­blow­ing poli­cies among its mea­sures, Mr Sta­ley’s mis­con­duct fell out­side of the cut-off pe­riod for the IoD’s re­port.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.