Centrica’s (LON:CNA) chief executive Iain Conn saw his pay package more than halve last year, the blue-chip company has revealed. The cut came after the British Gas owner recently posted a drop in profits for 2017, with the CEO further apologising for ‘a very poor shareholder experience’.
Centrica’s share price has jumped in London this morning, having added 1.77 percent to 143.75p as of 09:41 BST, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.20 percent in the red at 7,184.84 points. The group’s shares have lost just under 34 percent of their value over the past year, as compared with about a 1.6-percent fall in the Footsie.
Iain Conn’s pay slashed
Centrica published its annual report yesterday, disclosing that its chief executive Iain Conn’s pay package for last year was £1.69 million, down from the £4.04 million he received for 2016. While his salary rose from £925,000 to £936,000, he did not receive a cash or a deferred bonus compared to bonuses of a little over £1.5 million for 2016. His pay package in 2016 was also boosted by a £1.29-million recruitment award, after he left BP (LON:BP) for the British Gas owner. Conn, however, landed a £447,000 for 2017 as part of his long-term incentive plan.
“Centrica’s performance in 2017 has been disappointing for shareholders and the Committee has taken measures to ensure that variable remuneration outcomes reflect alignment with the shareholder experience,” Scott Wheway, chairman of the group’s Remuneration Committee, commented in the annual report.
Analysts on Centrica
Credit Suisse, which sees the British Gas owner as an ‘outperform,’ boosted its price target on the stock from 170p to 175p at the end of last month. According to MarketBeat, Centrica currently has a consensus ‘hold’ rating and an average price target of 177.43p.