Pressure over new GSK chief’s pay

Pharmaceuticals giant GSK’s new chief executive will receive a smaller pay package than her predecessor in an attempt to see off shareholder concern over executive pay.

The group said Emma Walmsley’s overall pay deal will be 25% lower than current boss Sir Andrew Witty, although she could still pocket a maximum payout of £8.7 million.

The decision reflects Ms Walmsley’s experience – this will be her first chief executive role – and followed a consultation with investors.

GSK’s board was reportedly under pressure from major shareholders to cut Ms Walmsley’s pay.

The firm, which has a major manufacturing base at Montrose, published details of her pay deal in its annual report, which also revealed Sir Andrew’s total pay package had increased by 2.5% to £6.8m for 2016.

He had the potential to earn a maximum of £11.6m if all targets had been met.

Glaxo’s remuneration policy report will face a binding shareholder vote at its annual general meeting on May 4.

Ms Walmsley, who takes over at the end of March, will receive a base salary of £1m this year, less than the £1.1m banked by Sir Andrew for 2016.

She will also have a smaller annual bonus target of 100% of salary, compared to 125% for Sir Andrew, while the maximum opportunities under the long-term incentive plan will also be cut to 550% of salary.

Once in post, she will become the most powerful female FTSE 100 boss, heading up one of the largest companies on the blue-chip index with a market capitalisation of £82.4 billion.

Anglo American revealed on Monday that it had moved to cap the bonuses of its executive directors.

It comes amid a flurry of pay announcements, which revealed WPP’s Sir Martin Sorrell was on course to pocket £50m.

A scientist at work at GSK’s Montrose site.