London, May 20: Pharmaceuticals giant Glaxosmithkline suffered an unprecedented defeat at its annual general meeting when rebel shareholders voted down a multi-million dollar pay deal for the firm's chief executive Jean-Pierre Garnier should he lose his job. Shareholders won by a whisker a vote against executive pay, including plans for Garnier to earn an estimated 35 million dollars "golden parachute" payment.

A total 50.72 per cent of shareholders refused to back the proposals yesterday, with 49.28 per cent siding with the firm's board of directors. Brendan Barber, general secretary elect of the trades union congress, an umbrella for unions across Britain, welcomed the defeat, calling it an "extremely significant result that will have repercussions way beyond Glaxosmithkline.
"Britain's boardrooms are now on notice but there is no guarantee they will act unless the government changes the law to ban payments for failure," he added. Bureau Report