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LONDON (Alliance News) - GlaxoSmithKline PLC Thursday confirmed that it will appoint Royal Bank of Scotland Group PLC Chairman Philip Hampton as non-executive chairman from September 1 2015, or at an earlier date if released from his other commitments.
Hampton will succeed current Chairman Christopher Gent. He will initially join the board as a non-executive director at the start of 2015, and will take on the role of deputy chairman April 1, 2015.
"GSK is well positioned for the future, with a strong R&D pipeline and the impending transformative asset transaction with Novartis announced in April. Sir Philip's appointment provides a clear plan of succession and we welcome him to our board," said Senior Independent Non-Executive Director Deryck Maughan in a statement.
Hampton became the chairman of RBS in February 2009, replacing Tom McKillop, as the bank turned to his stewardship at what was the beginning of its restructuring process in the wake of the financial crisis and its bailout by the UK government.
Together with former Chief Executive Stephen Hester, who succeeded Fred Goodwin, Hampton led the bank as it sold off numerous assets in order to shore up its balance sheet. Current Chief Executive Ross McEwan has focused the bank's activities on UK lending, a significant departure from the bold expansion strategy pursued by Goodwin in the years leading up to the crisis.
Hampton was previously the chairman of J Sainsbury PLC and group finance director at Lloyds TSB Group, BT Group PLC, British Gas and British Steel PLC.
Hampton will receive total fees of GBP700,000 for his role as chairman at Glaxo, made up of GBP525,000 in cash and GBP175,000 in shares.
Prior to this, he will receive fees of GBP85,000 as a non-executive director, made up of GBP63,750 in cash and GBP21,250 in shares, and upon taking up the role of deputy chairman he will receive GBP350,000 per year, made up of GBP262,500 cash and GBP87,500 in shares.
Royal Bank of Scotland said that Hampton will leave during 2015 after a suitable successor is appointed, and the process for selecting this successor will be managed by its nominations committee.
Shares in GlaxoSmithKline are trading up 0.7% at 1,439.00 pence Thursday morning. Shares in Royal Bank of Scotland are trading up 0.9% at 365.30 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Additional reporting by Samuel Agini; samagini@alliancenews.com; @SamuelAgini
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