GSK shareholders deny Garnier

GlaxoSmithKline's (GSK) shareholders have voted not to approve the proposed US$36m 'golden parachute' for ceo Jean-Pierre Garnier, should he resign or lose his job. They were incensed that Dr Garnier would get a generous severance package in the current financial gloom, with 51% voting against the proposal.

Although the vote was advisory, it is a clear indication of shareholders' views on the matter. GSK's chairman, Sir Christopher Hogg, said: 'The major reason for this negative vote has been that there are elements of our senior level remuneration, which do not accord with what is regarded as best practice by shareholders.

'There will be a review by Deloitte & Touche, which will include all aspects of remuneration, including those to which we are bound contractually. It will bear firmly in mind the new expanded guidelines on executive remuneration which the Association of British Insurers issued in December 2002, as well as the need to ensure that the remuneration we offer our key executives and scientists is competitive with that provided by other pharmaceutical companies.'