GlaxoSmithKline Board of Directors Supports CEO in Response to Elliott’s Criticism
By Cécilia Butini
GlaxoSmithKline PLC said on Friday that the company’s board of directors supports actions taken by chief executive Emma Walmsley in response to a letter sent by activist investor Elliott Management Corp. calling for changes to the board of directors before a planned separation of its activities.
The UK pharmaceutical company said the board believes Ms Walmsley is the right leader for New GSK – the rest of the business after the planned spin-off of its Consumer Health division – and that it expects fully that the team brings about a radical change. in terms of performance and long-term shareholder value.
He added that the board would assess any alternative options for mainstream healthcare that might arise, after Elliott asked the company to consider a sale of the business.
Elliott criticized GlaxoSmithKline’s “poor record of execution and value creation” in a letter released Thursday and urged the company’s board to appoint non-executive directors with biopharmacy and healthcare expertise general public before separation. It also prompted the company to consider internal and external candidates to manage its activities.
GlaxoSmithKline said in its response that it has conducted an extensive research process to appoint a designated CEO for Consumer Healthcare, and that process is now almost complete.
Write to Cecilia Butini at [email protected]