ANGER over executive pay rises at British Gas flared again yesterday as chairman Richard Giordano hit out at criticism of chief executive Cedric Brown's 75pc rise.
As Mr Giordano attacked the criticism as "emotive and unjustified", more details emerged of British Gas boardroom contracts.
Mr Brown's new £475,000 pay and perks package, which leaves room for further pay rises and bonuses at the board's discretion, entitles him to a Mercedes 500 series company car. Mr Giordano, also entitled to a Mercedes, has a chauffeur paid by British Gas. The company's contracts show five other senior British Gas executives are allowed a car up to a list price of £45,500.
Mr Brown and his fellow executives enjoy 33 days' holiday allowance, on top of public holidays. Mr Giordano, paid £450,000 a year, is granted 30 days' holiday, but his contract says he need devote only about 75pc of his time to the company.
British Gas pays for Mr Giordano's tax advisers in Britain and America, and all executives receive private medical insurance.
The new salary structure also boosts directors' pension packages, which are calculated on final salary.
It also emerged that, a month before announcing that share option grants will end from January, British Gas awarded Mr Brown options over 268,211 shares, while four other directors were granted a total of 405,097 options. On arriving last month, finance director Roy Gardner received options over 369,106 shares.
Labour yesterday appealed for the excessive pay packages to be controlled by the industry regulator and put up for shareholder approval. Shadow Trade & Industry minister Brian Wilson argued: "The regulator should be able to cap massive salary increases in the public utilities, and it seems reasonable that the shareholders should be consulted."
Mr Giordano, in 1985 Britain's highest paid chief executive earning £883,100, defended the pay reforms, saying: "British Gas is not a cosy monopoly earning easy profits and high returns."
The company said salaries were set by reference to directors' pay in the top 50 stock market companies with international operations.
