'I'll be a hero in three years'

NO ONE could accuse Jean-Pierre Garnier of selling himself short. From his huge £6m-a-year pay package to his role in 'transforming' the world of research and development, the chief executive of drugs giant GlaxoSmithKline is firmly cast as the star of his show.

This 56-year-old French-born 'citizen of the world' is a passionate advocate for his own 'daring' and 'bold' initiative to transform research and development at GSK, breaking it into small satellites. The aim is to mimic the dynamism of biotech companies and wring more productivity out of its annual spending of £2.2bn.

'Remember,' he says, 'no other company has done this. It is pathetic that we have to be the one to fix the problem, that for the first time in 25 years, the pharmaceutical industry is not productive.

'Has it been rough? Yes, but to ensure we succeed in transforming research and development productivity - that is the most important thing. The company is at stake here.'

His self-belief is unstinting and he has no doubt that he is worth what he is paid - and then some.

Garnier, who is married with three grown-up daughters, has his home in Philadelphia. He lives the American Dream and has caught the can-do ethos of big business over there. But he is a complex character who would appear to be a bringer of stress rather than a sufferer. He cheerfully admits: 'Zen-like, I am not. It is not my temperament and I have made peace with myself there.

'Obsessive? Yes, yes, I am obsessive and impatient. But anxious does not describe me. I have no trouble making difficult decisions. I do not agonise too much - just ask around. I sleep well at night.'

It is not the sleep of exhaustion, despite his gruelling travels, admittedly in the luxury of GSK's private jet. Two weeks ago he was in Dubai and Cairo; last week it was London, this week America.

But Garnier claims it is not lust for money that drives him, just success and status. Money is simply the score. His now infamous pursuit of higher pay and a historic £12m golden parachute was thrown out by shareholders last year, but it was 'the score' he believed he deserved.

He has steered GSK through the loss of patents on three of its blockbuster drugs: the antibiotic Augmentin and anti-depressants Seroxat and Wellbutrin.

These three drugs generated $4bn annual sales in America, where 60% of the group's profits are made.

'Those sales have disappeared practically overnight,' says Garnier, 'yet still we have managed earnings per share growth of an average 8% over the past three very rough years.' And he insists: 'I'll be a hero in two or three years when our four big bets on molecules, now in trials, will be filed for regulatory approval.'

As well as problems at GSK, Garnier has confronted issues that have plagued the industry - price, under-development of products, patents and politics.

'Listen, I really can't complain,' he says. 'I like my job. Yes, I was served a couple of deuces, not a couple of aces, but that's OK.'

Pay is one issue Garnier can hardly complain about, despite last year's shareholder revolt. The remuneration committee took the view that 'superior results' were produced after taking account of 'factors outside the control of management', notably exchange rate change and loss of key drugs to generic competition in the USA.

Losing one lucrative patent might be bad luck, but losing three seems to be careless. And exchange rate changes can be controlled by hedging. With a Gallic shrug and a warm, wide smile that takes 20 years off him, Garnier sidesteps the issues.

But if he judges a question to be 'chasing a phantom' and/or 'not an issue', charm is likely to yield to a raised voice. On 'factors outside the control of management', he replies with studied patience: 'Foreign exchange is certainly outside our control.' As for loss of patents, only Augmentin was not foreseen and came as a shock.

The company's sickly share price reflects deep doubts about GSK's growth prospects. But Garnier remains irrepressibly optimistic. So what is he on?

He laughs. 'I do not need to take anything. I am fortunate to be in very good health. And you have to be well in your head. You have to enjoy not the destination, but the journey.'

Sorry, it's only £6m

IN an unprecedented revolt last year, shareholders voted against GlaxoSmithKline's remuneration report after it emerged that Garnier was in line for £12m if he lost his job.

A chastened Glaxo consulted investors and agreed to cut Garnier's contract from two years to 12 months, halving the size of any potential pay-off.

That did not stop Garnier's pay last year rising to £2.8m, up from £2.45min 2002. He also made £2.7m from cashing-in share options. In February, Garnier netted a further £3.6m from option gains.