GSK share price little changed as chairman plans to step down

Shares in GlaxoSmithKline (LON:GSK) have been little changed in London this morning, as the company announced that its chairman Sir Philip Hampton had unveiled plans to step down after more than three and a half years in the role. The news comes after the blue-chip drugmaker announced last month that it was creating a nearly £10-billion consumer healthcare joint venture with US peer Pfizer, laying the foundation of its split into two UK-based companies.

As of 09:00 GMT, GSK’s share price had inched 0.08 percent higher to 1,499.80p. The stock is fractionally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.17 percent higher at 6,979.91 points. The group’s shares have added more than 10 percent to their value over the past year, as compared with about a 10-percent drop in the Footsie.

Sir Philip Hampton to step down

GSK announced in a statement this morning that Sir Philip Hampton has informed the board of his intention to step down as chairman.

“Following the announcement of our deal with Pfizer and the intended separation of the new consumer business, I believe this is the right moment to step down and allow a new Chair to oversee this process through to its conclusion over the next few years and to lead the Board into this next phase for GSK,” he explained.

‘Good time’ to look for successor

Vindi Banga, GSK’s Senior Independent Director, noted in the statement that the group had “a clear strategy, is delivering improved operating performance and has a clear pathway forward, this is a good time to start the process to find Philip’s successor”. The company noted that it had started to process to find a successor.

As of 09:12 GMT, Monday, 21 January, GlaxoSmithKline plc share price is 1,499.80p.