Centrica CEO thinks £4.5m Pay Packet “Impossible to Justify” as energy costs soar

29 views
Centrica's Chris O'Shea says there is no point trying to when millions of consumers cannot pay energy bills.
Centrica's Chris O'Shea says there is no point trying to when millions of consumers cannot pay energy bills.

Centrica’s Chris O’Shea says there is no point trying to when millions of consumers cannot pay energy bills.

CEO Acknowledges Pay Discrepancy:

Chris O’Shea, the CEO of Centrica, the owner of British Gas, has candidly stated that his £4.5 million pay packet is “impossible to justify.”

 This admission comes at a time when millions of customers are grappling with high heating bills due to the surge in energy costs.

Bonus Breakdown:

In 2022, O’Shea received bonuses totaling £3.7 million in addition to his £790,000 salary. These bonuses coincided with Centrica’s record profits of £3.3 billion, fueled by increased oil and gas prices following Russia’s invasion of Ukraine.

Record Profits Amid Customer Hardships:

Centrica’s record profits contrast sharply with the financial struggles faced by British Gas customers. Soaring energy prices have pushed annual household energy bills from around £1,000 in April 2021 to £2,500 in October 2022. 

Although the government intervened with an energy price guarantee, the average bill remains just below £2,000, and UK domestic energy customers collectively owe almost £3 billion.

CEO Reflects on Bonus Acceptance:

O’Shea acknowledged that the £3.7 million bonus was the first he had accepted during his time at Centrica. He emphasized his past decision to forgo bonuses due to the hardships faced by customers.

When pressed on accepting the recent bonus, O’Shea conceded that it is “impossible to justify” such a substantial sum, particularly in the context of customer struggles.

Regulatory Scrutiny and Investigation:

British Gas, under Centrica’s ownership, is currently under investigation by the regulator Ofgem for its use of debt collectors to install gas meters in the homes of vulnerable customers. 

This investigation was initiated following reports by The Times. O’Shea assured MPs last year that Centrica is addressing customer concerns related to the use of debt collectors and pledged to rectify any improper meter installations.

As O’Shea acknowledges the challenge of justifying his sizable pay packet, Centrica faces not only financial scrutiny but also regulatory investigations, adding to the complexities surrounding the energy company.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

Leave a Reply

Your email address will not be published.

Previous Story

Apple faces setback as US court bans sale of two iWatch models

Next Story

S&P 500 hits record high, marking full recovery from 2020 tumble

Latest from BUSINESS

withemes on instagram

This error message is only visible to WordPress admins

Error: No feed found.

Please go to the Instagram Feed settings page to create a feed.