GSK CEO faces bonus cut ahead of China probe
28.02.2014 / BioSpectrum
British drug maker GlaxoSmithKline that has been tangled in the corruption probe in China has now trimmed its CEO Sir Andrew Witty’s bonus.
Glaxo CEO’s pay totals $ 3.13 million, more than twice his bonus haul from last year, reports said. The corruption scandal has cost the company’s CEO Sir Andrew Witty up to $410,000 in potential bonus money, according to the company’s annual report.
For 2013, Sir Witty will receive a bonus of $3.13 million of a possible $3.54 million, the company said. The ongoing investigation was one of many factors taken into account when determining the bonus sum.
"Both Sir Andrew and the board are mindful of the impact this issue has had on the reputation of the company," remuneration committee chairman Mr Tom de Swaan said in a statement.
He added, "As a result, the bonuses awarded for 2013 were lower than they otherwise might have been."
The Guardian reported that Sir Witty received a pay and bonus package worth a total of $10.8 million.
GSK is facing a probe in China for allegedly funneling $489 million in bribes to local healthcare professionals and physicians to prescribe the company’s drugs.