Glaxo Sets Up Internal Runoff for CEO Successor

GlaxoSmithCline PLC is close to choosing its next CEO, and the three front-runners are internal candidates: Chris Viehbacher, president of U.S . Pharmaceuticals, David Stout, president of Pharmaceutical Operations, and Andrew Witty, president of Pharmaceuticals Europe, according to a report in the Wall Street Journal (subscription required.)

The selection process is a standout from the norm, said retiring CEO Jean-Pierre Garnier, as there are several options for a new potential CEO, and the company has hired outside consultants to evaluate the leadership capabilities of the three men. Glaxo Chairman Sir Christopher Gent is currently discussing the selection process with shareholders, and retiring CEO Jean-Pierre Garnier has even put the trio into test mode, giving them special tasks to see how they would handle big-picture problems.

"When you've got dysfunctional behavior going on at the top, as people are trying to elbow their way to the front, you can have all kinds of strange things happen." --William Zollars, YRC Worldwide.

At a recent Directorship Rountable on the topic of CEO succession, some directors warned that setting up a battle for the CEO spot between two or three candidates can sometimes backfire. "When you've got dysfunctional behavior going on at the top, as people are trying to elbow their way to the front, you can have all kinds of strange things happen that you wouldn't have if you didn't put that in play," said William Zollars, CEO of YRC Worldwide, and a board member ofCigna and Lerner. "So I'm a little skeptical about the whole approach of setting up a contest.

The candidates at Glaxo have been getting more public exposure and each has made presentations to the board. Garnier was expected to step down in October, but the board extended his tenure until May of next year so he could oversee the regulatory approval process of several important drugs in the pipeline.