Pru puts heat on British Gas
Wednesday 29 March 1995
and JOHN MURRAY
The country's biggest institutional investor yesterday warned highly paid directors at British Gas that they now have to "deliver".
Hugh Jenkins, head of Prudential Portfolio Managers, the largest shareholder in the privatised utility, said he was not consulted about the 75 per cent pay package awarded to Cedric Brown, chief executive of British Gas.
Mr Jenkins told the Commons employment committee that Prudential had requested "a little more of the background" from the gas company and had accepted the explanations.
He said that the British Gas chief's pay of £475,000 was "not over-generous". He added, however: "It is up to the company now to deliver performance."
In a submission to MPs, Prudential said it was championing the need for "performance requirements" before share options could be exercised.
The "man from the Pru", whose own £270,000 basic salary can be enhanced by a further 45 per cent, said Mr Brown's remuneration seemed to be in line with market practice for a company of that size.
Hugh Stevenson, chairman of Mercury Asset Management, the second-largest investor in British Gas, said he would support legislation to enforce disclosure of directors' salaries if this could not be achieved voluntarily.
Alastair Ross Goobey, chief executive of PosTel Investment Management, said he was not looking for restraint from senior directors of public companies, but investors should expect leadership.
Institutions should use their votes to curb excesses, he said.
Meanwhile, it emerged that directors of BAT, the tobacco and financial services giant, reduced overall boardroom pay last year, although some executives still received substantial increases. Total bonuses fell by £1m to £700,000 as profits across the group remained flat.
The biggest loser was Leo Denlea, the American who runs Farmers, BAT's US insurance subsidiary. His total pay halved to £591,000.
But Martin Broughton, the group's chief executive, saw his pay rise from £475,430 to £603,028 on the back of a £176,000 performance-related bonus.
The remuneration of David Allvey, finance director, jumped by more than £60,000 to £403,993 after a £101,500 bonus.
Eagle Star and Allied Dunbar chairman, George Greener, was the highest- paid director. He received £703,261, although his package has dropped from £776,079 in 1993.
- 1 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 2 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 3 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 4 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 5 Teenagers irritable because early school hours mess with their biological clocks
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...