GlaxoSmithKline to raise average UK salaries by 4%
GlaxoSmithKline (GSK) will raise its UK employees’ average salaries by around 4% in 2012.
In the GSK annual report 2011, published on 12 March, the pharmaceutical firm also said it will raise average US employees’ salaries by 3% in 2012.
The 4% pay rise will be reflected in the base salary of chief executive officer Andrew Witty and chief financial officer Simon Dingemans.
The full benefits packages of Witty, Dingemans and other GSK executives include: a company car, life assurance, annual bonuses, matching shares under GSK’s share incentive plan, and a defined contribution (DC) pension scheme or legacy defined benefit (DB) pension scheme.
Crispin Davis, remuneration committee chairman, said in the report: “In recent years, the remuneration committee has implemented a number of changes to our executive remuneration, after extensive consultation with, and good support from, our major shareholders.
“These changes have included more tailored benchmarking versus the local market, simplifying and aligning remuneration, and linking reward from long-term incentive plans more closely with performance against the firm’s key strategic priorities.
“During the year, there has been a substantial initiative by the government to improve corporate communication on executive pay.
“While many of these proposals are still at a formative stage, the report attempts to capture the spirit of the government’s direction, particularly with regards to simplification, separation of past pay and future policy and transparency.”
Read also Will executive pay decisions change?
Read more articles on executive remuneration