CEO of British Gas Pay Rise

He is actually the ceo of Centrica, which owns British Gas. This article explains his basic salary and the reason for his bonuses.
www.theguardian.com/business/2024/mar/26/british-gas-owner-doubles-bosss-pay-to-8m-despite-qualms-over-previous-rise
Centrica paid around £1bn in tax in 2022, the last year for which accounts are available. The government has imposed a windfall tax on energy companies, which was extended until 2029 in the last budget.

I understand the CEO himself said the bonus was not defendable.

He said his previous salary was impossible to justify. The article explains why his bonus was so high. His salary is £903k, the rest of his remuneration consists of bonuses.

I know his salary and bonuses are obscene, but I saw him interviewed a couple of weeks ago and quite liked him!

It’s absolutely disgusting that this man is paid so much money! IMO the energy companies are ripping off the British public! The so-called windfall tax introduced by the government (or Energy Price Levy as they renamed it) is a sham. It has loopholes that actually allow for huge tax relief on energy company profits. Once again, this government is working to make the rich richer, and conning the public into believing they are working for us. The situation, as I see it, is straightforward - Centrica is making eye watering profits (that they never expected to make) so stop giving that excess money to shareholders and to the CEO … reduce the cost of energy to the consumer. It’s not complicated - stop trying to make us believe that it is

Profits at British Gas, which supplies energy to UK households and businesses, jumped to £751m in 2023, up from £72m a year earlier.

Just consider that figure - profit up from £72 million to £721 million in a year! Yet we, the consumers, are still paying through the nose for our energy. This is obscene! Why aren’t the British public out on the streets protesting

Apologies that should be £751 million.

I think there is something wrong with a society where a CEO of an energy company can be paid such an obscene amount. I think I read somewhere, that in Denmark for example, the top strata of pay cannot exceed 20 times that of what someone on the lowest salary would receive. Some may not agree with that principle but personally I think we would have a more equable society if there wasn't such a great disparity between top remunerations and the paltry amounts that some workers take home.

Must log off as I'm becoming 🤬

I'll go and wash my mouth out with soap.

The Guardian article included by Germanshepherdsmum states that O’Shea’s massive bonus is based on performance. Perhaps the fact that approximately 3 million BG smart meters currently aren’t working has eluded them. Also the BG app has never worked properly. Customer satisfaction … I don’t think so!

The usual reactions to profits, the top man’s pay package and shareholders receiving a dividend - if they didn’t receive a dividend they wouldn’t invest. It’s likely that some on GN still own British Gas shares from when the company was privatised. Apparently British Gas’s profits amount to £8 per customer.

If you couldn’t do the job and achieve the results - and I’m confident nobody on GN could - then don’t criticise the remuneration of the person who can.

TerriBull

I think there is something wrong with a society where a CEO of an energy company can be paid such an obscene amount. I think I read somewhere, that in Denmark for example, the top strata of pay cannot exceed 20 times that of what someone on the lowest salary would receive. Some may not agree with that principle but personally I think we would have a more equable society if there wasn't such a great disparity between top remunerations and the paltry amounts that some workers take home.

Agreed. Why assume we have to pay such huge amounts when some people cannot afford to heat their homes. If it works out OK for aa CEO in Denmark why not here.

If you couldn’t do the job and achieve the results - and I’m confident nobody on GN could

That’s a rather sweeping statement Germanshephersmum. Perhaps some on GN may do an even better job than O’Shea!

I somehow doubt that.

Wyllow3

TerriBull

I think there is something wrong with a society where a CEO of an energy company can be paid such an obscene amount. I think I read somewhere, that in Denmark for example, the top strata of pay cannot exceed 20 times that of what someone on the lowest salary would receive. Some may not agree with that principle but personally I think we would have a more equable society if there wasn't such a great disparity between top remunerations and the paltry amounts that some workers take home.

Agreed. Why assume we have to pay such huge amounts when some people cannot afford to heat their homes. If it works out OK for aa CEO in Denmark why not here.

I agree too, and 'pay' should include any bonuses in the calculation, otherwise they'll reduce the salaries and increase the bonuses to get round it.

Surely the best outcome for the UK is much more affordable energy prices which would then release cash flow into the general economy? Households are paying obscene amounts for energy.
It is a total nonsense to claim that the CEO is worth anything like his remuneration package although I guess Inland Revenue is gaining a fair share back. The government is facilitating a complete failure of fair energy prices to the consumer. Shameful and shameless.

The market dictates the pay packages of senior personnel ronib. The company’s remuneration committee approved the package.

Gsm I expect that another committee approved the huge increase in monthly payments from end users too? Committee decisions are not necessarily moral ones though.

Morals aren’t considered by remuneration committees. A company needs officers who are good at their job and can add value. As I’m sure you know, Ofgem sets caps on the cost of fuel, not the energy companies.

Oh, the market dictates. Perhaps the market should take a good look at itself. To me this market=greed.

No-one is worth such obscene sums and in a decent democratic country no-one should be allowed to take amounts of pay that are so many umpteen times the pay of an average worker.

Do we need a high wage policy to limit the few stealing what should belong to the rest of us?

varian yes

But of course when all the people on the remuneration committee are worried about whether their own pay rise will be approved - and the same people bob up everywhere - they clearly vote in favour.

nahsma

But of course when all the people on the remuneration committee are worried about whether their own pay rise will be approved - and the same people bob up everywhere - they clearly vote in favour.

Even if they fail they seem to move from top job to another well-paid top job.

"It's not what you know, it's who you know." 🤔