BAE Systems boss sees pay package rise by 18% to £3.5m
The boss of BAE Systems has pocketed a near 20% pay rise as his eight-year tenure at the defence giant draws to a close.
Ian King, who is gearing up to retire on June 30, saw his total pay packet climb 18% to £3.5 million for 2016, thanks to a jump in his salary and awards.
The chief executive's base pay rose by £19,000 to £982,000 for the period, while his bonus lifted by £251,000 to £1.8 million.
His successor Charles Woodburn, the firm's current chief operating officer, was paid a total package of £3 million last year as he gets set to take over the reins.
It came as the firm outlined its new pay policy for 2017, which will face a binding shareholder vote at the company's annual general meeting (AGM) on May 10.
The new measures bolster Mr Woodburn's salary by £389,000 to £875,000 in his new role as CEO.
It means his salary will be £107,000 short of Mr King's current base pay.
The group finance director's salary will also be increased by 2.5% to £585,275, while the chairman's base pay will be boosted by £50,000 to £700,000.
The levels of the annual and long-term incentive plans will stay the same, the company said.
Colin McLean, managing director of SVM Asset Management, warned last month that investor anger over hefty financial rewards will come to a head this year as nearly half of FTSE 100 firms face binding votes on pay.
Pay for the FTSE 100 chief executives has risen from an average of £1 million in 1998 to £4.3 million in 2015, far outstripping the growth in average earnings.
Crest Nicholson shareholders revolted over executive pay packets on Thursday after the housebuilder slashed profit targets that help determine performance-based bonuses for its directors.
Shareholders were venting their anger at a pay policy that will see chief executive Stephen Stone more easily receive a £811,737 bonus on top of a base salary of £541,158, while chief operating officer Patrick Bergin could be on track to rake in £562,500, adding to his salary of £375,000.
Sir Martin Sorrell is also on course to pocket £50 million when WPP publishes its annual report next month.