Incoming GlaxoSmithKline boss set for smaller pay packet than predecessor
GlaxoSmithKline will hand its incoming boss a smaller pay package than her predecessor in an attempt to see off shareholder concern over executive pay.
The pharmaceutical giant said Emma Walmsley's overall pay deal will be 25% lower than current boss Sir Andrew Witty, although she could still pocket a maximum payout of £8.7 million.
The decision reflects Ms Walmsley's experience - this will be her first chief executive role - and follows a consultation with investors, the company said.
Glaxo's board was reportedly under pressure from major shareholders to slash Ms Walmsley's pay.
The firm published details of her pay deal in its annual report, which also revealed that Sir Andrew's total pay package had increased by 2.5% to £6.8 million for 2016.
He had the potential to earn a maximum of £11.6 million if all targets had been met.
Glaxo's remuneration committee chairman Urs Rohner said: "T he Committee gave careful and detailed consideration to Emma's remuneration package for 2017, taking into account all relevant factors.
"This included the constructive feedback received from shareholders which resulted in a number of refinements to the original proposals."
Glaxo's remuneration policy report will face a binding shareholder vote at its annual general meeting (AGM) on May 4.
Ms Walmsley, who takes over at the end of March, will receive a base salary of £1 million for this year, less than the £1.1 million banked by Sir Andrew for 2016.
She will also have a smaller annual bonus target of 100% of salary, compared to 125% for Sir Andrew, while the maximum opportunities under the long-term incentive plan will also be cut to 550% of salary.
Once in post, she will become the most powerful female FTSE 100 boss, heading up one of the largest companies on the blue-chip index with a market capitalisation of £82.4 billion.
Anglo American revealed on Monday that it had moved to cap the bonuses of its executive directors.
Chief executive Mark Cutifani's maximum annual bonuses will be cut to 300% from 350% of his basic salary to bring it "into line with other executive directors".
It comes amid a flurry of pay announcements, which revealed that Sir Martin Sorrell was also on course to pocket £50 million when WPP publishes its annual report.