GSK's new female CEO to get 25% less after pay policy review

London: Incoming GlaxoSmithKline Chief Executive Emma Walmsley, the first woman to lead a top global drugmaker, will get a pay package worth a quarter less than her predecessor, following a company rethink on remuneration.

Walmsley, who takes over next month, will be paid a base salary of 1,003,000 pounds ($1.23 million), or 10 percent less than outgoing CEO Andrew Witty.

She will also receive significantly lower pension contributions, as well as reduced bonus and long-term incentive opportunities, resulting in a total reduction in her package of about 25 percent, GSK said in its annual report.

"Taking into account the fact that this is Emma`s first CEO role, reductions have been made to all elements of her remuneration package in comparison to Sir Andrew`s current arrangements," the report stated.

The decision to pay her less comes at a time of increased focus on executive pay in Britain. The drugmaker said it had been consulting with shareholders for several months and modified its policy as a result of their feedback.

"We are acutely aware of the need for a balanced and responsible approach to remuneration," a spokesman said.

Walmsley, 47, takes over Britain`s biggest drugmaker at a challenging time and some investors have questioned her lack of direct experience in pharmaceuticals, since she has worked in GSK`s consumer healthcare division since 2010.

Just four days before Walmsley moves into the top job on April 1, U.S. regulators could approve the first substitutable generic version of GSK`s inhaled lung drug Advair, which has raked in more than a $1 billion in sales every year since 2001.