By the end of March, GlaxoSmithKline is about to have a new leader, and this marks a huge milestone as the incoming chief will be the first female CEO of the pharmaceutical company. However, it was reported that the new chief, Emma Walmsley, will be paid 25 percent less than her predecessor, Sir Andrew Witty.
Walmsley, who takes over GSK starting March 31, will be paid a base salary of 1,003,000 pounds or about $1.23 million, according to CNBC. This is said to be about 10 percent less than Witty’s pay.
She is also set to receive lower pension contributions and reduced bonus and long-term incentive opportunities. This totals to a reduction of her salary package of about 25 percent.
According to The Telegraph, the pharmaceutical company said that because Walmsley was less experienced than her predecessor, she gets a pay deal lower than Witty, who spent eight years as CEO.
In a statement, Urs Rohner, the non-executive director who chairs GSK’s remuneration committee, said, “Taking into account the fact that this is Emma’s first CEO role, reductions have been made to all elements of her remuneration package in comparison to Sir Andrew’s current arrangements.”
Moreover, it was reported that GlaxoSmithKline investors have asked the company to show restraint on executive pay. But Rohner said that the new CEO could expect pay increases in the future and that they intend to keep Walmsley’s package under review in the coming years “subject to her development and performance in the role.”
According to her GSK bio, Walmsley has been a member of the company’s corporate executive team since 2011. She was previously the head of the pharmaceutical company’s Consumer Healthcare, which develops and markets products in wellness, oral health, nutrition and skin care. Prior to joining GlaxoSmithKline, Walmsley worked with L’Oreal for 17 years where she held various marketing and general management roles.
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