GSK Annual Report 2002

46 GlaxoSmithKline Remuneration report
Annual remuneration
2002 2001
Total Annual and Total
Fees and Other Annual annual Fees and Other deferred annual
salary benefits bonus remuneration salary benefits bonus remuneration
Footnote £000 £000 £000 £000 £000 £000 £000 £000
Executive Directors
Dr J P Garnier a,c 967 132 1,353 2,452 932 101 2,417 3,450
Mr J D Coombe b,c 475 15 457 947 475 3 848 1,326
Total 1,442 147 1,810 3,399 1,407 104 3,265 4,776
Non-Executive Directors
Sir Richard Sykes d,e 154 8 – 162 411 3 – 414
Sir Christopher Hogg 252 – – 252 63 – – 63
Sir Roger Hurn 121 – – 121 135 – – 135
Sir Peter Walters e 51 2 – 53 135 1 – 136
Mr P A Allaire 68 – – 68 68 – – 68
Dr M Barzach f 100 – – 100 102 – – 102
Mr D C Bonham g – 5 – 5 29 – – 29
Sir Peter Job 59 – – 59 63 – – 63
Mr J H McArthur f 62 – – 62 73 – – 73
Mr D F McHenry 62 – – 62 68 – – 68
Sir Ian Prosser 59 – – 59 63 – – 63
Dr R Schmitz 69 – – 69 70 – – 70
Dr L Shapiro h 62 – – 62 68 – – 68
Mr J A Young e 29 2 – 31 80 – – 80
Total 1,148 17 – 1,165 1,428 4 – 1,432
Total remuneration 2,590 164 1,810 4,564 2,835 108 3,265 6,208
a In previous years, Dr Garnier’s salary and fees have included GlaxoSmithKline’s match on compensation that is deferred. For 2002 this is included within
contributions to money purchase schemes. Dr Garnier’s salary and fees for 2001 have been restated by £58,419, representing GlaxoSmithKline’s match
in 2001, in order to provide consistent presentation.
b Mr Coombe’s bonus for 2001 includes GlaxoSmithKline’s match on his deferred 2001 bonus. In addition to the bonus shown above for 2001,
Mr Coombe received £142,500 in 2001 awarded in respect of the second half of 2000 when he was an Executive Director of Glaxo Wellcome plc.
c The 2001 bonus for Dr J P Garnier and Mr Coombe includes the special deferred bonus awarded to them as members of the CET. The amount awarded
was equivalent to their salary on 31st December 2001 and was notionally invested in GlaxoSmithKline shares or ADSs on 15th February 2002. The bonus
to be paid out on 15th February 2005 will be an amount equivalent to the then value of shares or ADSs notionally acquired in February 2002 plus
dividends reinvested over the period. As at 31st December 2002 the value of those shares or ADSs notionally acquired in respect of Dr J P Garnier was
£687,946, a decrease of 32 per cent over the year. This includes dividends reinvested during the year of £15,225. Those shares notionally acquired in
respect of Mr Coombe were valued at £329,957 as at 31st December 2002, a decrease of 31 per cent over the year. This includes dividends reinvested
during the year of £7,521.
d In addition to the above, Sir Richard Sykes received £28,583 relating to his appointment as Senior Advisor from 1st June 2002. In 2001, Sir Richard
received a bonus of £314,700 awarded in respect of the second half of 2000 when he was Executive Chairman of Glaxo Wellcome plc.
e On 20th May 2002, Sir Richard Sykes, Sir Peter Walters and Mr Young retired from the Board. Following retirement they received the value of their shares
and ADSs as awarded under the Non-Executive Directors’ share arrangements (page 47) and equivalent SmithKline Beecham arrangements. As at
20th May 2002 they had been awarded shares and ADSs with a total value at the date of award, as indicated: Sir Richard Sykes £135,530; Sir Peter Walters
£249,876; Mr Young £187,034. On 20th May 2002 the value of these shares and ADSs as paid to them was: Sir Richard Sykes £122,860; Sir Peter Walters
£241,468; Mr Young £174,354. The change in value is attributable to dividends re-invested and the change in share price between the dates of awards
and 20th May 2002. Mr Young has elected to receive the value of his shares as at 20th May 2002 in three equal annual instalments and accordingly,
received £58,118 in 2002.
f Dr Barzach received fees of Euro 66,369 (2001 – Euro 62,428) from GSK France for healthcare consultancy provided. This is included within fees and salary
above. In 2001, Mr McArthur received fees of £4,631 as a Director of Glaxo Wellcome Inc. Mr McArthur no longer receives these fees. In 2001 these were
shown as other emoluments and have been restated to fees and salary, in accordance with the requirements of schedule 7A of the Companies Act 1985,
The Directors’ Remuneration Report Regulations 2002 (‘schedule 7A’).
g Mr Bonham resigned as a Non-Executive Director on 21st May 2001. During 2002 Mr Bonham received £5,000 in respect of 2001 and the value of his
shares, as at 21st May 2001, as allocated under the Non-Executive Directors’ share arrangements (page 47). As at 21st May 2001 he had been awarded
shares valued at £4,539 at the date of award. On 21st May 2001 these shares were worth £4,860. The change in value is attributable to dividends
re-invested and the change in share price between the date of award and 21st May 2001.
h Dr Shapiro is a member of GlaxoSmithKline’s Scientific Advisory Board for which she received fees, in addition to those shown above of $85,000
(2001 – $85,000) with $30,000 (2001 – $30,000) in the form of ADSs.
Where the Directors above have received part or all of their remuneration in currencies other than sterling, the average rates of exchange for the year have
been used. None of the above Directors received expenses during the year requiring separate disclosure as required by schedule 7A.