SSE bosses lose out on annual bonus after failed npower merger
The company’s entire board missed out on the bonus in the aftermath of the failed deal.
Bosses at energy giant SSE have missed out on an annual bonus this year after the collapse of its merger with npower in 2018.
The company’s entire board, including chief executive officer Alistair Phillips-Davies, missed out on the bonus in the aftermath of the failed deal.
Britain’s third biggest energy supplier is now set to float on the stock market, despite its energy service business reporting a 68% drop in underlying earnings to £89.6 million for the year to March 31.
During the year, SSE lost around 570,000 domestic gas and electricity customer accounts, falling to 5.78 million.
The Big Six supplier had sought a tie-up with npower to stabilise its position but called off the deal, blaming “challenging market conditions” and the Government’s price cap.
A number of directors at the firm have seen their annual pay packets slide, according to SSE’s annual report for the year – however, board members still received a long-term bonus of up to £390,000.
Mr Phillips-Davies, who led the firm through the collapsed deal, saw his basic salary increase by 3% to £890,000 for the year.
However, his total pay packet sank dramatically by 39% to £1.65 million, from £2.7 million the previous year, after missing out on the annual bonus. In the previous year, Mr Philips Davies was handed a £1 million bonus.
SSE’s other directors also saw a slump in pay, with finance director Gregor Alexander’s total pay packet sliding 36% to £1.3 million for the year.
The annual report also revealed that SSE had a median gender pay gap of 21% in April 2019, while it increased its proportion of female staff to 31.4% during the year.