GlaxoSmithKline [NYSE: GSK] today announced that it has implemented the next phase of its new incentive compensation program for professional sales representatives with the introduction of a new performance evaluation methodology and process.
In January 2011, GSK eliminated individual sales goals as part of the company's incentive compensation program for sales professionals who work directly with healthcare professionals. Beginning July 1, GSK is putting in place a new method for evaluating sales professionals' performance and bonus in alignment with the company's values of transparency, respect for people, integrity and focus on the patient.
Under the new system, GSK's sales professionals who work directly with healthcare providers will continue to be compensated with a competitive mix of salary and bonus. In place of individual sales targets, three primary factors will be evaluated to assess performance and determine bonuses: selling competency, customer evaluations, and the overall performance of their business unit.
"Our sales professionals play a critical role in providing doctors with appropriate, updated information on the safety and benefits of our medicines. This information helps doctors make informed treatment decisions for their patients," said Deirdre Connelly, President, North America Pharmaceuticals, GlaxoSmithKline." This industry-leading incentive program aligns our performance measures and rewards with our values so doctors can be confident that our sales professionals are focused on improving patient health."
Since first announcing its plans in July 2010 to radically change its sales incentive compensation system, GSK has conducted extensive research to define how best to obtain robust, ongoing, unbiased assessments of the effectiveness of its sales professionals in meeting customer needs. This effort is part of a wider evolution to align the company's sales and marketing programs with societal and customer expectations.
"Along with changing many aspects of how we conduct our business, we have also invested heavily in training and compliance programs to ensure that we are operating at or above the pharmaceutical industry code of ethics," Connelly said.
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information go to us.gsk.com, follow us on twitter.com/GSKUS or visit our blog (www.morethanmedicine.us.gsk.com/blog/).
GlaxoSmithKline cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK' s operations are described under 'Risk Factors' in the 'Business Review' in the company's Annual Report on Form 20-F for 2010.