Institutions

F&C to target big pharma pay as another senior figure leaves GSI team

McGeveran is the latest team member to depart

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F&C Investments, the UK-based asset manager, is to target remuneration at large pharmaceuticals companies – notably GlaxoSmithKline in the wake of its massive $3bn fine from US regulators last year.

“We will continue to push for the appropriate consideration of costs associated with the US lawsuit in remuneration calculations,” F&C says in its new responsible investment report. GSK had argued that senior management pay already took account of the issue.

F&C will also “encourage” the company to disclose when clawbacks are triggered among its top 100 executives and will look closely at the materials GSK publishes ahead of its forthcoming annual general meeting.

By coincidence, the report has been released on the same day as GSK’s new sustainability report, in which it commits to a “values-based approach to sales and marketing” globally – and to cutting its carbon footprint by 25% by 2020 and a carbon neutral value chain by 2050.Meanwhile, F&C has confirmed the departure of US-based Senior Vice President of Governance & Sustainable Investment (GSI) Elizabeth McGeveran – the latest departure from the team formerly headed by Karina Litvack who left late last year. McGeveran, who joined F&C in 1999, had been active in engaging on issues such as tar sands and the Wal-Mart Mexico bribery scandal. She also sits on the five-member External Citizenship Advisory Panel at oil major ExxonMobil alongside figures such as Tim Smith, Senior Vice President, Environment, Social, and Governance Group at Walden Asset Management.

As reported by RI this week, Mirza Baig will also be leaving to start his own consultancy in India. “We wish Elizabeth and Mirza success in their future endeavours,” F&C said.

The GSI team, which now reports to Martin Smith, Head of Product Management, features Vicki Bakhshi (Associate Director, Governance and Sustainable Investment), George Dallas (Director, Corporate Governance) and Alexis Cheang (Director, Governance & Sustainable Investment).