Electric shocks

It is good to see that your electric bill went to good cause .

Scottish & Southern Energy , the Perth-based parent company of Scottish Hydro-Electric , has handed its top executives inflation-busting salary increases after a review of boardroom remuneration concluded that they were underpaid .
SSE's four executive directors saw their basic salaries rise by between 9% and 17%.

Chief executive Ian Marchant is now on a basic of £720,000 - an increase of around £100,000 in the past two years. Also proposed to the annual meeting was that the maximum bonus "cap" for executive directors under the company's new performance share plan be increased from 100% to 150% of salary.

Marchant's salary, annual bonus, and benefits jumped by more than 16% to £1.21 million in 2006-07, up from £1.04 million in the prior financial year. As well as his basic salary of £675,000, bonus of £518,000 and benefits of £17,000, Marchant was awarded 46,081 shares under the deferred bonus plan.These shares had a value of nearly £670,000 at last night's closing price . In all , taking his total remuneration for the year to nearly £1.9 million . Marchant also made a notional gain on the exercise of share options of £408,876.

Colin Hood, who joined the board of SSE in January 2001 as power systems director and became chief operating officer in October 2002, was paid salary, bonus and benefits totalling £894,000 in 2006-07, up from £772,000 last time. Hood was awarded 33,446 shares under the deferred bonus plan worth nearly £500,000 at yesterday's closing price

Finance director Gregor Alexander received £656,000 in 2006-07, up from £531,000 last time, including a basic salary of £360,000 and bonus of £282,000.

Alistair Phillips-Davies, the energy supply director, took home £659,000, up from £531,000.

Chairman Sir Robert Smith, meanwhile, saw his pay rise from £218,000 in 2005-06 to £266,000.

Next time you are told you are over-paid , remember what Scottish Hydro consider as under-paid.

meanwhile also reported by The Herald , the new Scottish Media Group chief executive Rob Woodward is set to be handed free shares in the troubled media group potentially worth £2.5million . A revamped long-term incentive plan (LTIP), which will be put to a shareholder vote at an extraordinary meeting on Friday, will see a clutch of executives share 2007 awards with a potential value of £6.8 million. Finance director George Watt, sole survivor of the much-criticised "ancien regime" at SMG, could pocket more than £900,000 when the 2007 LTIPs vest in three years' time.
Rewards not to compensate for being underpaid , but to "incentivise and motivational and retentative " purposes .

Paid Richly For Failure

Yet another of Socialist Courier's never-ending exposure of greedy capitalist pigs with snouts in the trough .

Former Scottish Media Group chief executive Andrew Flanagan was handed a pay-off of £831,024 after being ousted last year. This comprised £649,600 in compensation for loss of office, the Scottish Media Group's annual report reveals, together with the release of awards worth £181,424 under the company's long-term incentive and performance share plans.

He earned more than £1.1 million from SMG in 2006 after working only six-and-a-half months of the year before stepping down on July 18. This included £257,000 in salary for the period, plus benefits of £50,000 comprising car, medical insurance and pension supplement. On top of that, his severance deal included a payment of £555,600, representing 12 months' salary and benefits in lieu of notice. Surprisingly perhaps, he also got a £44,000 bonus. A further £50,000 was added to Flanagan's compensation package because he agreed to waive all statutory and further legal rights against the company.

Other executive with SMG to receive a golden handshake was former television chief Donald Emslie, who left last month after eight months as acting chief executive . He was paid a total of £361,135 last year, including a £24,000 performance bonus. The total included £45,000 for the extra responsibilities he took on when Flanagan left. Emslie also received LTIPs with a cash value of £173,775. He also was paid one year's severance still to be announced .

And were those pay-offs justly deserved rewards for success ? Hardly !

New in-coming chairman Richard Findlay slammed the predecessor board's strategy as fatally flawed and badly executed, leading to "excess debt, a lack of focus, instability in the leadership, dissatisfaction among the shareholders and poor staff morale".