Glaxo silences fat-cat pay protests

SPECULATION that Sir Christopher Gent could take over as chairman of GlaxoSmithKline was greeted warmly by shareholders today as the drugs giant prepared to confront the fat-cat lobby at its annual general meeting.

Investers making their way to the QE2 conference centre in London said Gent could give a major boost to the group as it continues to build bridges with the City after last year's disastrous revolt over executive pay.

Matthew Green, 65, said: 'He'd be very good and the City-type grandee the company needs. I think, since the departure of Sir Richard Sykes, the company has lacked a bit of direction.'

Gent has been touted as a possible successor to Sir Christopher Hogg, who has already stepped down as chairman of Reuters. Glaxo refuses to comment on the succession issue.

Whatever Hogg's imminent future, he looked to have staved off a repeat of last year's pay revolt with nearly four out of five institutional shareholders backing Glaxo's revised pay policy. It is understood the efforts of the Glaxo chairman ahead of today's meeting secured 80% backing from the proxy vote.

This is despite fierce opposition from shareholder activist group PIRC and the trade union Amicus, which protested outside the AGM about the 2% pay award offered to its members at the company.

The good weather may have taken the heat out of most of the rebels. The QE2 centre was only half-full as Hogg opened today's meeting. Glaxo had expected 1000 shareholders to attend.