Pay increase for Sir John Egan

Sir John Egan, chief executive of BAA, the airports operator, received a 28 per cent increase in his basic salary last year, according to the company's annual report.

Sir John's basic pay went up from pounds 311,000 to pounds 398,000 in the year to 31 March. The group also set aside pounds 134,000 last year for his pension, the same as in the previous year, but disclosed for the first time.

A BAA spokesman said Sir John's salary increase reflected an pounds 80,000 performance bonus, linked to an increase in the company's profits, customer satisfaction with BAA and productivity improvements at the group.

Sir John also holds options over 293,620 BAA shares, exercisable at an average price of 386.5p each, compared with a market price of 723p yesterday.