Centrica boss Iain Conn’s pay more than halves to £1.7m after “disappointing” 2017

The boss of British Gas owner Centrica saw his pay package slashed by nearly 60 per cent last year after he was forced to apologise to shareholders when the company’s annual profits plunged by almost a fifth.

Iain Conn took home a total of £1.7m in 2017, down from a remuneration package of £4.0m in 2016, according to the company’s annual report.

Although Conn’s salary was bumped up to £936,000 from £925,000 in 2016, he received no cash or deferred bonuses compared to total bonuses of £1.5m in 2016.

Conn’s pay increase in 2016 was also largely due to a share award he was given when he joined the company after leaving oil major BP, which he did not receive last year.

He was, however, awarded £447,000 under his long-term incentive plan.

Scott Wheway, the chair of the remuneration committee, said: “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.”

Shareholders have previously challenged Conn’s pay, with about 15 per cent of voting against his 2015 pay rise.

In 2018, Centrica said no executive will receive a salary increase, and reflecting the drop in the company’s share price, the committee decided to reduce the long-term award level for 2018 to 250 per cent of salary.

“The committee remains dedicated to ensuring that remuneration arrangements recognise the strong performance of the business whilst remaining appropriate in the context of shareholder experience,” said Wheway.

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