Glaxo To Implement New Evaluation Method For Bonus Pay

26th Jul 2010 20:58

DOW JONES NEWSWIRES GlaxoSmithKline (GSK, GSK.LN) on Monday said it will implement a new system for evaluating and compensating its sales professionals beginning next year, saying customer feedback would be a factor in determining bonuses. The pharmaceutical company said payouts will be determined, in part, by evaluating a sales professional's adherence to the company's values of transparency, integrity and focus on patients. Glaxo previously paid bonuses on individual sales targets. Glaxo, the U.K.'s biggest drug maker, said physicians have asked to see fewer sales professionals, and those they do see need to provide greater value in helping improve patient health. Deirdre Connelly, president of Glaxo's North America pharmaceuticals unit, said physicians were asking for more information about reimbursement, disease education and support for improving patient health. "The changes we are making to our sales compensation system will enable us to align our financial incentives to activities that offer appropriate value that is consistent with our company values," said Connelly. Last week, Glaxo reported it missed forecasts for the second quarter as continued strong sales of new products and its pandemic flu vaccine and further expansion in emerging markets was offset by generic competition and a legal charge. Glaxo's American depositary shares were up 0.6% to $36.70 in recent trading. -By John Kell, Dow Jones Newswires; 212-416-2480; [email protected] (END) Dow Jones Newswires July 26, 2010 15:58 ET (19:58 GMT)