LONDON-- GlaxoSmithKline PLC on Thursday named Philip Hampton as
its next chairman, a move that while expected comes as the
pharmaceuticals giant struggles to right itself amid a series of
probes over alleged overseas bribery.
Mr. Hampton, currently chairman of Royal Bank of Scotland Group
PLC, will succeed longtime Glaxo Chairman Christopher Gent. Glaxo
said Mr. Hampton would join its board as a nonexecutive on Jan. 1
and become deputy chairman from April 1 before replacing Mr. Gent
on Sept. 1 next year, or earlier if he is released from his other
commitments.
Mr. Hampton will leave RBS at some point during 2015 after the
80% U.K. state-owned bank finds a suitable successor, the bank said
in a separate statement.
Mr. Gent had previously been slated to step down by the end of
next year and told shareholders earlier this year that he hoped
that his successor would be named by the end of this year. Mr. Gent
has served as chairman for almost a decade.
Mr. Gent had been under increasing pressure this year amid a
series of probes into Glaxo's global practices.
Last week, a Chinese court found the drug maker's local
subsidiary guilty of bribery and fined the company nearly $500
million.
Separately, Glaxo has been investigating claims its employees
bribed doctors in Iraq, Jordan, Lebanon and Syria. Glaxo has
apologized for the Chinese bribery and said it cooperated fully
with investigators. It has said it takes all of the other
allegations seriously, as its investigations continue.
The company also cut its full-year earnings forecast in July,
after weak U.S. sales and currency moves hit second-quarter net
profit. This year, shares have fallen 11%, even as those of its
European rivals have gained ground.
Mr. Hampton joined RBS in January 2009 soon after its GBP45.5
billion ($74.3 billion) government bailout. During his tenure, the
former Lazard banker played a crucial role negotiating with the
U.K. treasury over issues including the shape of the bank and how
much it should pay its chief executive.
But the 60-year-old executive never achieved his initial aim: to
steward the bank back into private hands. Mr. Hampton has said that
he thought he would stay in as RBS chair for between five and seven
years. It is unclear who will succeed him.
Previous to his post at RBS, Mr. Hampton was the chairman at
supermarket group J Sainsbury PLC.
At Glaxo, Mr. Hampton will be paid GBP85,000 ($138,900) a year
as a nonexecutive director, GBP350,000 when he becomes deputy
chairman, and GBP700,000 on his appointment as chairman. His salary
will be paid in cash and shares.
Write to Max Colchester at max.colchester@wsj.com and Hester
Plumridge at Hester.Plumridge@wsj.com
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