pounds 5m pension for Cedric Brown
Sunday 17 December 1995
Yesterday Shadow Chancellor Gordon Brown said he intended to raise the "appalling" sums due to the privatised industry bosses with John Major when the Prime Minister returns from the Madrid summit.
Details of the multi-million pound deals were revealed by Mr Brown's Shadow Treasury team yesterday. The estimates were based on the calculating procedures of leading actuaries.
Labour claims that industry and government have been trying to wriggle out of the requirement that companies disclose the full cost of pensions, which was the most radical suggestion in this year's Greenbury report on executive pay, which was meant to dampen down the "fat cat" scandal.
Huge pay rises for industrialists have led to correspondingly enormous increases in their pension entitlements. The extra benefit will be met from company pension funds, parts of which have been built up by the contributions of low-paid employees and workers sacked by utilities directors. Cedric Brown has presided over the loss of 30,000 jobs at British Gas. Last year he received a 75 per cent pay rise, which took his salary from pounds 270,000 to pounds 475,000.
Mr Brown, 60, is entitled to a pension of two-thirds of his final salary when he retires. The hike in his pay means that his annual pension will be pounds 316,000 instead of pounds 180,000. The estimated cost to the fund of his retirement, based on standard pension industry calculations and assumptions, has risen from about pounds 3.5 million to pounds 5.5m, Labour says. The pounds 2m increase is so large that it cannot be met by Mr Brown's contributions to the fund, which at present stand at pounds 19,000 a year.
A British Gas spokeswoman said that the rules that applied to Mr Brown were the same as applied to any other employee with 40 years service. A spokesman for the National Grid said the company did not comment on its employees' pensions. But he said it disclosed all forms of remuneration to directors in its prospectus.
Gordon Brown said he would demand to know why "these extraordinarily generous pensions" had not been disclosed after the Greenbury report.
"The country will be rightly appalled by the fact that the privatised utility bosses continue to pay themselves huge pensions, while the general public still has no right to know how much they are giving themselves," he said.
Labour said that of the 24 private utilities in the top 250 companies, only one had implemented the full Greenbury recommendations.
Feast for the rich, page 18
- 1 All Blacks Aaron Cruden misses New Zealand flight after drinking session, has brilliant excuse
- 2 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 3 'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
- 4 Alicia Keys leaks nude photo 'to create a kinder and more peaceful world'
- 5 Clothes store Joy angers mental health campaigners with Twitter exchange on bipolar disorders
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
£300 - £350 Per Day: Clearwater People Solutions Ltd: Pharmaceutical Computer ...
£70 - £90 per day: Randstad Education Birmingham: Higher Level Teaching Assist...
£50 - £80 per day: Randstad Education Birmingham: Randstad Education is the UK...
£400 - £450 Per Day: Clearwater People Solutions Ltd: Our client is currently ...