GlaxoSmithKline, the largest drug maker in Europe, may become the first British benchmark company to have its executive pay proposals rejected by shareholders, who are demanding salary and severance be linked to stock performance.
Investors, led by the Assn. of British Insurers, are urging Glaxo to change Chief Executive Jean-Pierre Garnier’s severance plan, which would pay him as much as $28 million if he’s fired. More than half the shareholders may oppose the board’s pay committee report at a meeting today, investor groups said.
The California Public Employees’ Retirement System, the largest U.S. pension fund, has said it would vote against the proposals. CalPERS stake in Glaxo is just under 1%.