Zeneca, the chemicals group, added fuel to the debate over directors' pay yesterday after revealing that chief executive David Barnes received pay and shares totalling pounds 1.1m last year. Mr Barnes's emoluments soared 50 per cent to pounds 651,000. On top of that, he made a paper profit of pounds 451,000 from the exercise of share options.
Alan Pink, Zeneca's strategic planning and personnel director, also did well with a 49 per cent raise last year, taking his total package to pounds 503,000.
Zeneca appeared unembarrassed by the massive increases, published in its annual report yesterday, despite the presence on its board of Sir Richard Greenbury, chairman of Marks & Spencer, who drew up the code of best practice covering directors' pay. In his chief executive's review, Mr Barnes comments: "1995 has been a rewarding year during which Zeneca has grown in stature."
Sir Richard's own salary and fees from the group remained unchanged at pounds 24,000, but former Monopolies Commission head Sir Sydney Lipworth drew pounds 71,000 in his first year as chairman of the group.
Zeneca also revealed that Tony Rodgers, a former director who left the company in September, took away a pounds 420,000 pay-off for loss of office, raising his emoluments to pounds 692,000 last year.
Sir Sydney said Zeneca's board complied fully with the official codes of practice, which "are viewed as a baseline". The company had devised its own code of ethics which reflected Zeneca's high standards.
News of the payments comes in the wake of the revelation by ICI, Zeneca's former parent, that chairman Sir Ronald Hampel picked up pounds 863,000 last year, 42 per cent up on 1994. It is the latest in a series of lavish payments to drug firm directors.Reuse content