{
  "docId": "019f6b8f-1354-774d-98d0-be219b0f6eb3",
  "docSlug": "jarvis-elliott-management-gsk-letter-july-2021",
  "documentTitle": "Elliott Management GSK Letter July 2021",
  "authorId": "elliott-management-gsk-letter-july-2021",
  "authorName": null,
  "documentKindSlug": "document",
  "documentKindLabel": "Document",
  "sourceTypeSlug": "independent_analyst",
  "sourceTypeLabel": "Independent analyst",
  "presentationDate": "2021-07-01 00:00:00",
  "orientation": null,
  "aspectRatio": null,
  "pageNumber": 7,
  "pageCount": 19,
  "prevPage": 6,
  "nextPage": 8,
  "slideType": "key_messages",
  "function": "present_solution",
  "density": "balanced",
  "nDataPoints": 4,
  "notes": "This slide outlines Elliott's strategic recommendations for GSK's governance and performance management.",
  "elementsJson": null,
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019f6b8f-1354-774d-98d0-be219b0f6eb3/7",
  "deckHref": "/decks/019f6b8f-1354-774d-98d0-be219b0f6eb3",
  "deckJsonHref": "/decks/019f6b8f-1354-774d-98d0-be219b0f6eb3.json",
  "deckAnchorHref": "/decks/019f6b8f-1354-774d-98d0-be219b0f6eb3#slide-7",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "Choose the Right Leadership for the Job: The first step in regaining trust and credibility with investors is to add biopharmaceuticals and scientific experience to the GSK Board.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1075a54e-28a2-443d-89b4-92452463036d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.78,
        "x": 0.11,
        "y": 0.67
      },
      "kind": "paragraph",
      "text": "Recommendation 2: Incentivise stronger performance and greater ambition",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "219eab61-e51f-458e-a465-25bac9d1c1f1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "engage in a credible process to ensure GSK has the right leadership and make timely, appropriate changes. Best practices require the following:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2367b62f-292f-465b-8eb0-14761a6fd58e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.47
      },
      "kind": "paragraph",
      "text": "Elliott calls on the Board to confirm that, prior to the separation from CH, GSK will appoint non-executive directors with deep biopharma and CH expertise, and that the new, fit-for-purpose GSK Board will then run robust processes for selecting the best executive leadership for New GSK and CH, considering both internal and external candidates.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "aae133e4-d4ea-4020-b66f-99721be0bc1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.7
      },
      "kind": "paragraph",
      "text": "The portion of the compensation plan linked to financial targets should be substantial. The bottom end of the revenue and operating profit guidance issued at the Investor Update (2021-2026 CAGR of ‘more than 5%’ for revenue and ‘more than 10%’ for operating profit) should be viewed as a floor below which no bonus is earned for that portion of the compensation plan. The achievement of more ambitious targets (e.g., 8% and 15% revenue and operating profit CAGRs, respectively) should earn a full bonus.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b8a6f1a1-6981-48f2-96a7-3b2bab2ba00b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "governance",
      "slug": null,
      "matchId": "d43fde26-db63-4a03-8865-eee104e9375b",
      "evidence": "Recommendations regarding board composition and executive leadership selection processes.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 8,
      "from": 7,
      "beatId": "ece1c7bd-28de-4a68-bbd6-965b3cf98731",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Solution & Approach",
      "beatSlug": "consultants-gambit-solution-approach",
      "evidence": "Slides 7-8 present key messages, implying a proposed solution.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 9,
      "from": 2,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "ce5898c8-a7b7-482e-ac1a-083005fd3875",
      "evidence": "The problem statement and closing ask imply a cost of inaction.",
      "position": 0,
      "objective": "Highlight the consequences of not changing",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    },
    {
      "to": 9,
      "from": 7,
      "name": "Quick Win Big Bet",
      "slug": "47-quick-win-big-bet",
      "bestFor": "Transformation planning, 100-day plans, resource allocation",
      "matchId": "cd21131b-1ce5-446e-aa3d-ac9508465cf4",
      "evidence": "The key messages and closing ask suggest a plan for quick wins and big bets.",
      "position": 1,
      "objective": "Present a clear plan for change",
      "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap",
      "confidence": 0.6,
      "description": "Separate initiatives into immediate wins and longer-term strategic bets"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}