The owner of British Gas, Britain’s biggest domestic energy supplier, is facing a backlash against its chief executive’s pay next week – a year after he said his multimillion pound package was impossible to justify.
Sky News has learnt that a number of Centrica’s shareholders will vote against its remuneration report at its annual meeting on May 8 following a recommendation from the leading proxy adviser Institutional Shareholder Services (ISS).
In a report circulated to clients, ISS said a 28.7% salary rise for Chris O’Shea was the principal reason for its recommendation to oppose Centrica’s pay report.
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It added that Mr O’Shea’s pay rise and the 8.5% increase handed to Centrica’s finance chief were “materially above those given to the wider workforce”.
“The CEO’s salary positioning and manner in which the increase has been implemented is not considered to be supported by cogent rationale,” ISS said.
As a result of the salary increase, Mr O’Shea will also benefit from “quasi-guaranteed restricted stock plan awards, which are also seeing material increases under the proposed remuneration policy”.
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Last year, Mr O’Shea told the BBC that he could not justify his multimillion pound pay package.
He was paid £4.3m last year, roughly half what he earned in the previous 12 months.
Companies including Unilever and Melrose have been hit by sizeable pay revolts this week amid signs that UK boards are experiencing a bumpier-than-expected AGM season.
Centrica declined to comment.
