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Last Updated: Monday, 17 May, 2004, 20:02 GMT 21:02 UK
GSK gets approval for pay deals
Glaxo headquarters
Glaxo headquarters in Brentford
The bosses of GlaxoSmithKline (GSK) have succeeded where they failed last year - securing shareholder approval for their latest pay deals.

Led by chairman Sir Christopher Hogg, the drugs giant claims 85% of the votes on the issue where in favour of the firm's new remuneration report.

Last year's pay deal, which proposed a 13% rise to 2.8m for chief executive Jean-Pierrer Garnier was rejected.

But despite some protests, shareholders have supported this year's packages.

"I'm very pleased that all the resolutions have been passed by such a substantial majority." said Sir Christopher after the vote at GSK's annual general meeting in London.

"I can only say that our duty as a board of directors is to see that the company's management is paid competitively."

Vocal opposition

This year's remuneration report was opposed by trade union Amicus and lobby group Pensions and Investment Research Consultants.

One shareholder who voted against the latest pay deal said he believed excessive pay rewards made to "a handful of people in the city" were "completely unjustified and were ruining social cohesiveness".

He added: "I just gawp at the amount of money that is slushing around because no one has the guts to get up and say enough is enough."

Last year GSK became the first company in the FTSE 100 index to have its executive pay rejected.

Following the rebellion it ditched two-year contracts for its executives, which included a highly controversial big money "golden parachute" for Dr Garnier, should he ever be removed.

GSK replaced them with one-year, no-compensation deals.




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Glaxo bows to pressure over pay
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Glaxo responds to Aids drugs call
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