Baker collects £1m from Boots but no bonus

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The Independent Online

Dismal trading at Boots over the past year meant directors missed out on being paid bonuses, according to the company's latest annual report, but that did not stop Richard Baker, the chief executive, earning more than £1m.

Dismal trading at Boots over the past year meant directors missed out on being paid bonuses, according to the company's latest annual report, but that did not stop Richard Baker, the chief executive, earning more than £1m.

Mr Baker, who presided over a 27 per cent fall in profits at the health and beauty chain last year, was paid £644,000 in basic salary. The impact of the company's poor performance on his pay was softened by a £380,000 benefits payment.

This, the company revealed, related to a £200,000 payment made to Mr Baker in return for him giving up options at his previous employer, Wal-Mart, the US chain that owns Asda. A further £151,000 was paid in relocation expenses after Mr Baker's appointment in September 2003. Since then the group's trading has been hit and Mr Baker has fought to woo back customers.

Directors at Cable & Wireless, the telecoms group that also published its report and accounts yesterday, did rather better by way of bonuses.

Francesco Caio, the chief executive, was paid a £700,000 basic salary but earned himself a bonus of more than 100 per cent through an additional £854,000 payment. His total pay package, including benefits, was £1.9m compared with £2.2m the year before.

Charles Herlinger, the new finance director, was paid £1.2m including £408,000 of benefits paid in part for relocation. Lord Robertson of Port Ellen, C&W's executive deputy chairman, will be paid £250,000 a year, although this will entail working an extra 20 days, bringing his annual working time for the company to 100 days a year.

Separately, Richard Lapthorne, the C&W chairman, who was due to leave next January, will extend his tenure at the company.

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