The Chief Executive of Centrica Plc (LON:CNA) got a bumper pay raise last year while millions of households across the country struggled with energy debt.
Chris O’Shea’s total remuneration in 2023 was £8.23 million ($10.4 million), up from £4.49 million a year earlier, the company said in its annual report on Tuesday.
“Centrica’s performance and share price growth are the most significant factors that determine our CEO’s remuneration,” Carol Arrowsmith, head of the firm’s remuneration committee said in an emailed statement. O’Shea has “beaten nearly all the stretching performance targets set by the committee.”
The bumper payout is likely to draw criticism as UK energy bills remain high even as inflation is dropping. Centrica stepped up payouts to its shareholders after profits at British Gas, its retail energy unit jumped. British Gas serves 7.5 million customers.
© Supplied by BloombergWhile UK energy bills are set to fall to the lowest level in two years on the back of declining wholesale prices, they are still more than 25% higher than they were before Russia’s invasion of Ukraine, according to The Resolution Foundation. Consumer groups say roughly 3 million households are in debt to their supplier, calling for the government and suppliers to help the lowest income households.
British Gas and other domestic suppliers got an earnings boost after Ofgem loosened the way it calculates the price cap, allowing them to claim back some of the past losses from elevated wholesale costs. But the watchdog has also warned energy firms must not use surging profits for huge shareholder payouts.
The total compensation package includes £810,000 in salary, a £1.42 million annual bonus, £5.9 million in long-term bonus aside from some pension and benefits, the company said. With effect from 1 April 2024, O’Shea’s salary will increase to £855,000.
