GSK CEO Emma Walmsley Set for Major Pay Increase in 2025

In a significant move to align executive compensation with industry standards, GSK has announced a potential substantial pay increase for CEO Emma Walmsley in 2025. The British pharmaceutical giant's annual report reveals a new compensation plan that could more than double Walmsley's earnings, potentially making her one of the highest-paid chief executives in the industry.

Compensation Overhaul Aims to Retain Top Talent

GSK's decision to revise its CEO compensation package comes after a comprehensive review of its peer group, which now includes global biopharma leaders such as Amgen, AstraZeneca, Bayer, Bristol Myers Squibb, Gilead, Novartis, Pfizer, Roche, and Sanofi. The company's Remuneration Chair, Wendy Becker, stated that Walmsley's current package, which falls in the lower quartile of the new size-adjusted global biopharma peer group, is "insufficient either to reward her performance or to provide appropriate capacity for succession."

Under the new plan, Walmsley's basic compensation could increase from £6.6 million ($8.4 million) to £8.8 million ($11.1 million). Including on-target bonus and long-term incentive payouts, her total compensation could reach up to £21.56 million ($27.1 million) if GSK's shares achieve a 50% increase in 2025.

Performance-Linked Pay Reflects Industry Trends

The restructured compensation package aligns with a broader industry trend of tying executive pay more closely to company performance. GSK's annual report emphasized Walmsley's leadership in delivering "continued, improved operating performance in 2024," highlighting the company's reshaped product portfolio and increased contribution from Specialty Medicines.

Despite taking a 16% pay cut in 2024, with total compensation of £10.6 million ($13.4 million), Walmsley's potential earnings in 2025 could position her among the top-paid executives in the pharmaceutical industry. For comparison, AstraZeneca CEO Pascal Soriot received £14.7 million ($18.5 million) in 2024, while Novartis CEO Vas Narasimhan earned 14.2 million Swiss francs ($15.7 million).

Addressing Gender Pay Gap in Pharma Leadership

As one of the few women leading a top-tier pharmaceutical company, Walmsley's compensation adjustment also brings attention to the gender pay gap in industry leadership roles. The move to increase her salary to better align with male peers reflects a growing awareness of pay equity issues at the executive level.

GSK's decision to revise its compensation strategy comes at a time when the company is positioning itself as a "biopharma company" following the divestment of its consumer health unit, Haleon. This strategic shift has necessitated a reevaluation of GSK's peer group and compensation benchmarks to ensure competitiveness in attracting and retaining top talent in the global pharmaceutical market.