An overwhelming 95% of GlaxoSmithKline’s shareholders voted in favour of approving the company’s executive remuneration package at yesterday’s annual meeting, in spite of calls earlier in the week to reject the proposed pay schemes as “unjustified” [[23/05/05a]].

Pensions Investment and Research Consultancy, a shareholder lobby group which advises fund managers, claimed that GSK chief executive Jean-Pierre Garnier could receive anything from $3.8 million dollars right up to $30.5 million if he meets a variety of performance targets. Dr Garnier earned $4.6 million dollars in salary, bonuses and benefits in 2004.

The vote comes in stark contrast to the shareholder revolt of 2003 when a proposed $36 million dollar “golden parachute” should Dr Garnier resign or lose his job was rejected by 51% of shareholders [[20/05/03a]]. A subsequent review by Deloitte & Touche was subsequently brought in to review the firm’s remuneration policy and recommended a number of actions, including the tougher alignment of pay with performance, and a halving of executive contracts without compensation from 24 months to 12 months [[15/12/03a]].