Drugs firm directors get high on cash

Executives of pharmaceutical company SmithKline Beecham (SB), which merged with rival Glaxo Wellcome earlier this year, enjoyed a very lucrative final year of SB.

Jan Leschly, SB chief executive, retired at the group's AGM in April but he enjoyed a very remunerative final year in the post. His pay, bonus and benefits totalled £2,188,000 last year - an inflation-busting 14% rise on his previous takings. And although he may have left the boardroom he will continue to be paid until he reaches the retirement age of 60 this September, receiving nine months' salary for four months' work.

His replacement in the expanded group - Jean-Pierre Garnier, or "JP" to other board members - also did quite nicely. He was given a 34.7% rise to £1,464,000.

Fellow board member Dr George Poste, who retired as SB's chief science and technology officer at the end of 1999, was also treated handsomely. His final year salary totalled £1,292,000 - a 107.1% rise. This figure included an additional one year's salary and bonus of £531,915. It remains to be seen whether the merged group are as generous to the 3,000 workers who are to lose their jobs after the merger (see page 13 on manufacturing job losses).In addition to their bloated pay packages, Garnier and Poste made huge profits on the sale of share options, making £945,226 and £1,294,988 respectively.