GlaxoSmithKline to replace bonuses with sales targets

Drug maker GlaxoSmithKline China plans to end bonuses for sales representatives and replace them with individual sales targets.

The new compensation system will apply to all GSK sales employees who deal with healthcare professionals, including sales representatives and sales managers, the company said in a statement on Wednesday.

The government initiated an anti-corruption campaign in the medical industry in July after conducting an investigation into GSK, which suggested the company was involved in bribery and fixing the price of drugs.

GSK's new compensation program is part of its efforts to repair its image.

Under the new system, all employees dealing with customers will be evaluated according to their technical knowledge, quality of service, and adherence to the company values of transparency, integrity, respect and patient-focus.

The transition to the new sales compensation model will commence in January 2014 in China and commence in other markets around the world during 2014. It will be fully implemented in all of the countries GSK operates in by early 2015.

"Our medical representatives are the gateway to our customers and it is important we inspire, coach and ultimately reward people working within the organization to focus on behavior which reflect our values," said Herve Gisserot, senior vice-president and general manager of GSK Pharmaceuticals and Vaccines China.