Northern directors' bonus plan revealed

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The Independent Online
Northern Electric's directors can boost their salaries by up to 30 per cent through the company's executive directors' bonus scheme. The details of the bonus scheme emerged last night despite the company's refusal to reveal them earlier this week .

The bonus scheme means the basic pay of Northern Electric's chief executive, Antony Hadfield, who earns £180,000, can be boosted by £54,000, bringing his total pay to £234,000.

The scheme's rules make the level of bonus dependent on the relative growth of the company's earnings per share compared to that of the other regional electricity companies, excluding the two best and worst performers.

A further element in the calculation is the degree to which the company meets customer service standards as set and monitored by Offer, the industry regulator.

In declining to reveal the bonus scheme details, Northern Electric, the target of a takeover bid by Trafalgar House, appears to have misunderstood City takeover rules, which require directors' bonus scheme details to be disclosed.