Share options for 5,000 at British Energy

Around 5,000 employees of British Energy, the privatised nuclear generator, are to receive at least 1,000 share options for the first time next month, worth a minimum of almost pounds 1,500 at yesterday's closing share price.

The group also revealed a pounds 1.5bn deal with British Nuclear Fuels (BNFL) to cover much of its outstanding fuel reprocessing liabilities, which will save British Energy pounds 10m a year. The reprocessing deal covers fuel from five advanced gas cooled reactors at fixed prices, which would pass some of the risk in the contracts over to BNFL. British Energy raised its accrued liabilities for reprocessing and decommissioning by pounds 53m last year to pounds 3.8bn.

The share option scheme came a year after privatisation which has seen British Energy shares surge from their flotation value of 105p on the back of generous dividend payments guaranteed by the government.

All staff will receive 1,000 share options from 15 July at the current share price on that day. If they stay with the company they will be able to exercise the options in three years' time, making a profit if the price then is higher than the price now. Employees with more than five years' service will receive more options up to a maximum of 2000 shares.

Mike Kirwan, finance director, said such as broad scheme was "very unusual". He continued: "It's much more driven by out belief that employees are properly motivated if they are properly incentivised." Asda, the supermarket group, is one of the few large UK companies that have extended share option schemes to all employees as opposed to other save-as-you-earn schemes.

Bob Hawley, the chief executive, said board executives would also receive share options for the first time, along with other senior managers. He declined to spell out details of their scheme, except to say it would be linked to performance targets, though he said more detailed would be given at British Energy's annual shareholders' meeting on 18 July.

Mr Hawley, who was paid a basic salary of pounds 207,000 in the year to March, said the executive scheme would not be "abnormal". He added: "We are lean cats really." The group said it had no plans for a long-term incentive plan on top.

British Energy yesterday announced its first set of profits for the year to March of pounds 36m after tax, compared with pro-forma losses the previous year of pounds 155m. The shares rose 9p to 148p, though they remain below their peak of 163.5p.

Efficiency savings helped to lift profits, with the Sizewell B reactor running with an 81 per cent load factor, including statutory cut-offs for safety checks. The company increased its share of the energy market from 19 to 21 per cent. The cost-cutting programme continued, with 484 staff leaving to bring the workforce down to 5,940.

News
people
Sport
Yaya Sanogo celebrates scoring the opening goal with Arsenal's English midfielder Alex Oxlade-Chamberlain
champions leagueLive: All the latest from the Emirates and Bulgaria, where Liverpool face Ludogorets
News
Andy Murray with his girlfriend of nine years, Kim Sears who he has got engaged to
peopleWimbledon champion announces engagement to girlfriend Kim Sears
Arts and Entertainment
An unseen image of Kurt Cobain at home featured in the film 'Kurt Cobain: Montage of Heck'
filmThe singers widow and former bandmates have approved project
PROMOTED VIDEO
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Langley James : IT Support; Helpdesk, VMware; Manchester, £18k

£16000 - £18000 per annum: Langley James : IT Support; Helpdesk, VMware; Manch...

h2 Recruit Ltd: Business Development Manager - HRO - £70k+ ote

£35000 - £450000 per annum + £3k car, £70k ote: h2 Recruit Ltd: Do you want to...

Citifocus Ltd: Newly Qualified Accountants - Risk Mgmt

£Attractive Package: Citifocus Ltd: Prestigious financial institution seeks to...

Citifocus Ltd: Operational Risk Analyst

£Negotiable: Citifocus Ltd: Experienced operational risk professional with ban...

Day In a Page

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game
Can SkySaga capture the Minecraft magic?

Can SkySaga capture the Minecraft magic?

It's no surprise that the building game born in Sweden in 2009 and now played by millions, has imitators keen to construct their own mega money-spinner
Christmas 2014: 23 best women's perfumes

Festively fragrant: the best women's perfumes

Give a loved one a luxe fragrance this year or treat yourself to a sensual pick-me-up
Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

Our partner charities help veterans on the brink – and get them back on their feet
Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

Putin’s far-right ambition

Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

Escape to Moominland

What was the inspiration for Finland's most famous family?
Nightclubbing with Richard Young: The story behind his latest book of celebrity photographs

24-Hour party person

Photographer Richard Young has been snapping celebrities at play for 40 years. As his latest book is released, he reveals that it wasn’t all fun and games
Michelle Obama's school dinners: America’s children have a message for the First Lady

A taste for rebellion

US children have started an online protest against Michelle Obama’s drive for healthy school meals by posting photos of their lunches
Colouring books for adults: How the French are going crazy for Crayolas

Colouring books for adults

How the French are going crazy for Crayolas
Jack Thorne's play 'Hope': What would you do as a local politician faced with an impossible choice of cuts?

What would you do as a local politician faced with an impossible choice of cuts?

Playwright Jack Thorne's latest work 'Hope' poses the question to audiences
Ed Harcourt on Romeo Beckham and life as a court composer at Burberry

Call me Ed Mozart

Paloma Faith, Lana del Ray... Romeo Beckham. Ed Harcourt has proved that he can write for them all. But it took a personal crisis to turn him from indie star to writer-for-hire
10 best stocking fillers for foodies

Festive treats: 10 best stocking fillers for foodies

From boozy milk to wasabi, give the food-lover in your life some extra-special, unusual treats to wake up to on Christmas morning