Performance Pay Package Halved for GlaxoSmithKline CEO

Sir Andrew Witty, the boss of Britain’s biggest drugmaker, saw his total remuneration drop by almost half last year, as declining company sales in Europe affected his performance-based pay. The chief executive of GlaxoSmithKline saw his total pay packet cut from £6.8m in 2011 to £3.9m last year, the company said in its annual report published yesterday. Of the total pay packet, £1.03m was his base salary, up 3pc from the previous year. A further £49,000 was paid out as “other benefits”, such as healthcare, a company car or personal financial advice. But his pay based on performance – accounting for 72pc of his overall remuneration in 2012 – suffered significantly due largely to sales falling in the austerity-hit eurozone. Of his total pay, Sir Andrew’s annual bonus was £905,000, down from £2m in 2011. He also earned a further £125,000 as part of a deferred bonus plan. His performance share plan fell by more than half to £1.78m.