Glaxo Brings In Performance Related Pay For Agencies

GlaxoSmithKline (GSK) has announced that it is to introduce a performance related payment scheme across its global creative agency roster.

Agencies that will be affected by the scheme include; Dentsu, Grey Worldwide, J Walter Thompson, Jordan McGrath, McCann-Erikson Worldwide, Ogilvy & Mather Worldwide and Publicis. A number of smaller agencies will also be affected.

According to ABN AMRO analyst, Neil Carter: “This announcement continues the trend towards performance-related fees in the industry. However, given how fragmented the GSK account is, it is unlikely to have a major impact on any individual agency.”

The scheme will come into effect from January 2002 and will aim at rewarding results and quality of service. Director of European communications, Neil McCrae, said the scheme will: “Ultimately benefit both GSK and our agencies [while being] in line with the industry trend.”

The implementation of the new contracts is said to be a priority for GSK and while the pharmaceutical company is not looking at adding new agencies to its roster, it has not ruled out a roster review in the long-term.

GlaxoSmithKline was created last year as a result of a merger of two healthcare companies, Glaxo and SmithKline Beecham.

GlaxoSmithKline: 020 8975 2000 www.gsk.com

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