GlaxoSmithKline’s Board Backs CEO Walmsley After Elliott’s Letter For Management Shakeup

GlaxoSmithKline plc (NYSE:GSK) said its board sees Chief Executive Emma Walmsley as the right person to lead its pharmaceutical business after the upcoming split with its consumer-health unit.
The board “fully supports” the steps she’s taking to improve performance, GSK said in a statement Friday.
After amassing a stake in Glaxo in its first public comment, Elliott called on Thursday for board changes ahead of the planned separation of GSK’s businesses.
It asked Glaxo to launch a process to decide whether Ms. Walmsley should continue to lead the company. Elliott also criticized the company’s recent performance under her leadership.
In its response, GSK noted that it had already appointed two new non-executive directors to the board in the last 18 months. The company intends to add new faces to the team ahead of the separation “to increase biopharmaceuticals and scientific experience.”
GSK’s board said that it would evaluate any alternative options for the consumer-healthcare unit that may arise.
Price Action: GSK shares are up 0.13% at $40.22 during the market session on the last check Friday.