Drug giant GlaxoSmithKline (GSK) is considering making changes in the way its sales force is compensated, according to an internal memo obtained by Bloomberg News and The Wall Street Journal.
GSK, which is laying off hundreds of workers at its facilities in RTP and others in Pennsylvania, is now led in North America by Jack Bailey.
Bailey replaced Deirdre Connelly in February. Connelly had championed the compensation plan, which bases pay for sales reps on numerous criteria other than financial targets.
Bloomberg reported on Friday that a task force was reviewing “more comprehensive options to simplify the Patient First program.
The memo was sent to staff on April 1. The review was based in part on “feedback” from employees, Bloomberg noted.
A GSK spokesperson confirmed the memo to Bloomberg.
“The review of the compensation model underscores the pressure on Chief Executive Officer Andrew Witty to revive U.S. operations, which account for almost a third of Glaxo’s sales. The Patient First program was put in place in 2011 to end the focus on sales targets following allegations that Glaxo had illegally promoted drugs and failed to report key safety data,” Bloomberg reported.
Read more at: http://www.bloomberg.com/news/articles/2015-04-10/glaxo-plans-changes-to-compensation-program-for-u-s-sales-team-i8bs4vv6
In a statement to Bloomberg, GSK added:
“We remain resolutely committed to our commercial model. Glaxo has led the industry by changing the way we reward our sales representatives.”
Read more at: http://www.bloomberg.com/news/articles/2015-04-10/glaxo-plans-changes-to-compensation-program-for-u-s-sales-team-i8bs4vv6
