Pharmaceuticals Glaxo Pays Chief Pounds 4 Million Despite Pounds 1.9 Billion Fine
From Guardian (UK) (March 7, 2013)
GlaxoSmithKline paid its chief executive, Andrew Witty, almost pounds 4m last year, despite the company paying out a $3bn (pounds 1.9bn) fine to settle claims that it tricked and bribed doctors into prescribing dangerous antidepressants to children.
The drug company also boosted the value of Witty's pension pot to pounds 13.7m, and will allow him to collect a further bonus of pounds 452,000 if he hits targets.
Witty's total pay of pounds 3.9m, which included a cash bonus of pounds 905,000 and share bonuses worth pounds 1.8m, was 42% less than the pounds 6.8m he picked up last year. Tom de Swaan, the chair of GSK's remuneration committee, said Witty's reduced pay "reï¬?ected a very challenging operating environment".
A spokesman said: "Executive pay is based on stretching performance targets and awards in 2012 reflected these. Total pay fell by almost half compared to 2011 due to the difficult trading environment the group faced, particularly in Europe where governments implemented austerity measures."
The $3bn fine was over allegations GSK mis-sold drugs and gave doctors trips to Bermuda if they agreed to write extra prescriptions. Glaxo said the fine "related to settling matters from the past, before Andrew was CEO. The board was supportive of efforts to resolve this litigation."
GSK said Witty could collect total pay of pounds 10.6m next year. Rupert Neate
Posted: March 2013