British drugs giant GlaxoSmithKline is facing a shareholder revolt over controversial proposals to boost chief executive Jean Pierre Garnier's pay.

The proposed pay deal would hand Mr Garnier discounted share options and free shares worth about $15m (�9.6m) at current prices, nearly doubling his present remuneration, according to press reports.

Shareholders are due to vote on the pay plans at their annual general meeting in May next year.

But some of the firm's biggest investors are reported to have expressed their opposition to the proposals during meetings this week with GSK chairman Sir Christopher Hogg.

Some investors are understood to have questioned whether Mr Garnier's track record justifies such a large increase in pay.

GSK's financial performance has faltered, with profits falling by 25% to �4.5bn in the most recent financial year.

Benchmark

At the same time, the company's share price has come under pressure, falling 30% to �12.48 over the last two and a half years.

Critics have also said that the company - formed by a merger between Glaxo Wellcome and SmithKlineBeecham in early 2000 - has had a poor record in developing best-selling new drugs since the tie-up up was completed.

Investors are also worried that the pay award, modelled on US-style corporate salaries, could be replicated across other leading UK and European firms.

They claim that this year's wave of US corporate scandals have discredited pay packages that are skewed so heavily towards share options.

But GSK is arguing that the pay package is intended to align Mr Garnier's remuneration with the salaries of other chief executives in the pharmaceutical sector.

The company was due to hold further meetings with shareholders on Friday.