Last year BAT demerged its financial services division, principally Eagle Star, and folded it into Allied Zurich. The group also merged its tobacco interests with Rothmans to form one of the biggest cigarette makers in the world. The Right Honorable Kenneth Clarke MP, the former Chancellor of the Exchequer, is non-executive deputy chairman of BAT and also chairs the remuneration committee.
MARTIN BROUGHTON, chairman of British American Tobacco, saw his pay package rise by nearly a third to pounds 1,017,394 in 1998, and exercised options in BAT shares which gave him pre-tax gains worth another pounds 970,054. Mr Broughton, who joined the group in 1971, took home pounds 771,763 in 1997.