Boss of British Gas owner gets 44% pay rise to £2.4m following announcement 4,000 jobs are to be cut

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The boss of British Gasoline proprietor Centrica noticed his pay leap 44 per cent to £2.4m final 12 months whereas the corporate minimize 1000’s of jobs amid tumbling income.

Ian Conn loved the bumper pay rise regardless of British Gas losing 742,000 customers in 2018 as households switched to rival suppliers. That was an enchancment on the 1.Four million British Gas misplaced in 2017 when Mr Conn was paid £1.7m.

The chief govt is paid round 72 occasions greater than common British Gasoline employees who earn £34,000. In the meantime costs for customers have soared. Greater than half of British households have seen payments rise this month by a median of greater than £100 after regulator Ofgem elevated its vitality worth cap.


British Gasoline ranked 26th out of 30 vitality corporations for customer support, in a survey by shopper group Which?. The UK’s largest vitality provider has a poor phone customer support line and doesn’t supply worth for cash, in accordance with a ballot of 1000’s of households.

However Mr Conn noticed his complete pay rise sharply as he collected an annual bonus, in accordance with the corporate’s annual report.

In February Centrica warned that income might be £300m decrease due to Ofgem’s cap which was launched in December.

Centrica’s annual report mentioned: “Iain has proven important resilience within the face of this problem and has led the enterprise via the shifting context, protecting the strategic targets in sight and guaranteeing that the organisation stays adaptable and modern.”

It isn’t the primary time that the chief govt has been criticised over his pay deal. In 2017 it was revealed that Mr Conn had been handed £4.1m, a pay rise of virtually 40 per cent on the £3m he pocketed the earlier 12 months.

The primary of Centrica’s newest spherical of job cuts started final week with as much as 500 workers axed following the closure of workplaces in Glasgow and Leeds.

The remainder of its deliberate cull of employees is to happen over the subsequent three years. Centrica has let 5,500 staff go because the begin of 2016.

Final month MPs ordered the UK’s largest corporations to cap sky-high salaries for prime bosses and align them extra carefully with peculiar employees, or face the wrath of a brand new regulator.

A tough-hitting report from the Business, Energy and Industrial Strategy Committee inspecting the topic claims that hovering chief executive paypackages at FTSE 100 firms are a logo of “company greed” and are tarnishing Britain’s status.

The analysis concludes {that a} stronger hyperlink must be made between govt and worker pay, citing “big differentials” within the pay system.

Rachel Reeves, Enterprise, Vitality and Industrial Technique Committee, mentioned: “The roll name of dishonourable govt pay choices at corporations – together with Persimmon, Unilever, Royal Mail, BT, Melrose and Foxtons – inform the all too acquainted story of company greed which is so damaging to the status of enterprise in our nation.

“However these examples additionally spotlight the persistence of govt pay insurance policies the place far too little weight is given to delivering real long-term worth, investing sooner or later or guaranteeing rewards are shared with employees.”

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