This content is not available in your region

GlaxoSmithKline appoints HSBC's Iain Mackay as new CFO

Access to the comments Comments
By Reuters
GlaxoSmithKline appoints HSBC's Iain Mackay as new CFO
FILE PHOTO: The GlaxoSmithKline (GSK) logo is seen on top of GSK Asia House in Singapore, March 21, 2018. REUTERS/Loriene Perera/File Photo   -   Copyright  Loriene Perera(Reuters)

LONDON (Reuters) – GlaxoSmithKline <GSK.L> has named Iain Mackay from global bank HSBC <HSBA.L> as its new chief financial officer, marking another key appointment by Chief Executive Emma Walmsley as she reshapes the top team at Britain’s biggest drugmaker.

Mackay, 56, will leave HSBC at the end of the year and join GSK on Jan. 14, 2019, when he will become CFO designate, the pharmaceuticals group said on Tuesday.

The phased move allows for a transition period from January and the end of March 2019, during which GSK’s current finance chief, Simon Dingemans, will hand over the ropes before Mackay takes on full responsibility from April 1.

GSK previously announced in May that Dingemans, a former Goldman Sachs <GS.N> investment banker who joined in 2011, would be retiring next year. Since Dingemans will only leave at the end of March 2019, he will continue to be responsible for delivering on 2018 financial results.

Dingemans will not receive any severance payment and Mackay will similarly not get any special payment to mark his arrival, a company spokesman said.

The change provides a further opportunity for Walmsley to stamp her imprint on GSK as she tries to boost sales and improve productivity, especially in the core pharmaceuticals division.

Walmsley, who took over in April 2017, has already appointed a new head of pharmaceuticals in Luke Miels and a new head of drug research in Hal Barron, as well as making Karenann Terrell head of digital operations.

While banking is very different to pharmaceuticals, Walmsley said Mackay would bring valuable experience as the finance head of another complex global organisation within a highly regulated industry.

“He is a strong leader with a track record of driving cost, cash and capital allocation discipline to deliver strategy. These capabilities will be vital as we continue to implement our innovation, performance and trust priorities for the benefit of patients and shareholders,” she added.

He also has some experience in healthcare as a trustee of the British Heart Foundation. Before HSBC he was at General Electric, Schlumberger Dowell and Price Waterhouse.

Mackay will be replaced at HSBC by Ewen Stevenson, currently chief financial officer of the Royal Bank of Scotland <RBS.L>.

(Reporting by Ben Hirschler in London and Justin George Varghese in Bengaluru; Editing by Amrutha Gayathri and Jane Merriman)