Centrica's CEO, Chris O'Shea, experienced a significant increase in his annual pay, rising from £4.5 million to £8.2 million. This substantial leap was driven by a combination of factors, including a £810,000 salary, £1.4 million in annual bonuses, and £5.9 million in longer-term bonuses tied to the company's share price performance.
Centrica's financial success, attributed to rising energy prices and regulatory decisions, contributed to O'Shea's increased remuneration. Despite his previous concerns about justifying such a salary, the company emphasized that his bonuses were contingent upon Centrica's financial performance and share price, as approved by shareholders.
Carol Arrowsmith, a Centrica board member, defended O'Shea's pay, highlighting the need to attract and retain high-performing executives for the company's long-term success. She emphasized that O'Shea's pay structure was aligned with industry norms and had been approved by shareholders.
O'Shea, who joined Centrica in 2018 and became CEO in 2020, faces the challenge of balancing executive compensation with public perception amidst Centrica's financial gains and ongoing consumer challenges in the energy sector.