GlaxoSmithKline has announced changes to its current sales representative incentives programme.
The company stated that it will keep its existing pay structure, where 75% of a sales representative’s pay is fixed and 25% is variable, but sales reps involved in areas such as oncology and vaccines will be evaluated using individual sales targets. It will also increase the maximum variable pay for an individual sales person.
In a statement, GSK revealed that the changes “reflect the growing shift in GSK’s portfolio to innovative Specialty Care products, including oncology” and “will allow the Company to attract and retain the best sales force talent, enhancing the quality of our dialogue with healthcare professionals (HCPs) and helping them better serve patients.”
Changes will be made to the incentive programme for the company’s Pharmaceutical and Vaccines sales representatives to “better recognise and reward individual effort.”
Specifically in Specialty Care, the capped variable pay element of a sales representative’s compensation will be evaluated on the basis of individual sales targets.
All participants would be required to complete “new ethics and values-led behaviour training, with twice-yearly certification”, and the changes will be applied initially in the US, UK and Canada from July 2019 and a comprehensive training, control and monitoring framework will be put in place to ensure implementation of the new programme is fully aligned with GSK’s values-based approach to HCP engagement.
The company implemented stricter rules in 2012 as part of a broad transparency initiative.