Lex chief's pay soars by 17%

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The Independent Online
Sir Trevor Chinn, chairman of Lex Service, saw his total pay jump by 16.9 per cent to pounds 453,667 in 1996, according to the car dealership group's latest annual report and accounts.

The accounts also show that Sir Trevor, who split the roles of chairman and chief executive last year, received a pounds 60,126 performance-related bonus.

Andrew Harrison, who joined as chief executive from Courtaulds in September, received a total of pounds 129,413, which also included a pounds 13,750 bonus. He was also granted 128,534 share options exercisable in 1999 at a price of 389p each. Lex shares closed yesterday at 330p, down 1.5p.

The second-highest paid board member was Peter Harris, finance director, with his remuneration rising from pounds 209,371 to pounds 253,927.

The pay increases came in a year when group profits before exceptional items increased by 22 per cent to pounds 51.2m, while earnings jumped by 14 per cent to 31.3p per share. Dividends were increased from 15p to 16p.

In his first review of the business, Mr Harrison said in the annual report that while returns from Lex Retail improved during 1996, they remained "inadequate".

He said there would be further changes in the structure of car dealerships "as manufacturers react to over-capacity and changing consumer behaviour by creating larger marketing territories".