GLAXOSMITHKLINE chief executive Sir Andrew Witty saw his total remuneration crash by nearly £2.9m last year, as the pharma giant was hit by static sales and a drop in core operating profits.
Sir Andrew’s performance-related bonuses were cut in half, from £5.7m to £2.8m, leaving the CEO’s overall pay at £3.9m – down from £6.8m in 2011.
Tough trading conditions in Europe were partly responsible for a one per cent fall in group sales for the UK-based firm in 2012.
“We have always had stretching targets on pay,” a spokesperson from Glaxo told City A.M.
“This is not a surprise because we’ve always had pay related to the company’s performance.”
One year ago the firm’s remuneration chairman, Sir Crispin Davis, hiked the limit for Sir Andrew’s performance share plan to 600 per cent of salary, due to fears that the CEO’s pay was too low compared to many of Glaxo’s pharmaceutical peers.