Chris O’Shea, chief executive of British Gas’s parent company Centrica, sees his compensation nearly double to £8.2 million, sparking discussions on executive pay amidst the ongoing energy crisis.
Centrica, the parent company of British Gas, has disclosed in its latest annual report that Chief Executive Chris O’Shea’s overall compensation nearly doubled in the past year, reaching £8.2 million. This pay package includes a basic salary of £810,000, annual bonuses of around £1.4 million, and longer-term share price-based bonuses amounting to £5.9 million. The substantial increase, from £4.5 million the previous year, is largely due to the exceptional performance of Centrica’s share price, which has seen a marked increase over the last three years.
O’Shea himself has acknowledged the significant size of his pay package but pointed out that his remuneration is determined by the company’s remuneration committee, not by him personally. He also noted that Centrica has provided £140 million in voluntary support to its customers throughout the recent energy crisis and has committed to investments in gas storage and plans for investing up to £4 billion in the near future to aid energy security and performance.
Carol Arrowsmith, a member of Centrica’s board, defended O’Shea’s compensation, emphasizing that it was in line with the terms agreed upon his appointment and has been approved by shareholders. She justified the pay package by pointing to Centrica’s improved performance and share price growth, also stressing the importance of attracting and retaining top executives to oversee the complex operations of the company.
