
Centrica CEO receives millions in bonuses while earnings halve
Centrica CEO receives millions in bonuses while earnings halve
- Centrica reported a significant decline in profits with earnings dropping nearly in half to £814 million in 2025.
- Chief executive Chris O'Shea received a total pay package of £4.73 million, which included £3.6 million in bonuses despite a backlash from nearly 40% of shareholders.
- The situation raises questions about executive pay structures amidst poor company performance and shareholder sentiment.
Story
In the United Kingdom, British Gas owner Centrica has faced scrutiny after revealing that its chief executive, Chris O'Shea, received £3.6 million in bonuses and share awards last year, which occurred in the wake of a significant decline in the company's earnings. The company reported that its underlying earnings dropped to £814 million for the year, down from £1.55 billion in 2024. This decline was largely attributed to a £80 million hit from unusually warm weather and a 39% drop in earnings from the household energy supply arm, as customers opted for cheaper fixed tariff deals and reduced their heating due to the milder conditions. Mr. O'Shea’s total pay package for 2025 amounted to £4.73 million, which reflected a decrease from the previous year's £5.08 million. This disparity in pay comes despite growing discontent among shareholders, with nearly 40% voting against the board's pay plans during last year’s annual general meeting. Centrica's annual report indicated that the company had made adjustments to O'Shea's remuneration to match competitive market rates, given the complexities of managing a large organization such as Centrica, suggesting that his performance and leadership over the last five years justified his pay positioning among the upper tier of FTSE 100 CEOs. Centrica is also facing challenges on the market front as shareholders reacted negatively to the company's decision to pause share buybacks in favor of prioritizing an investment program. This announcement led to a sharp decline in the company’s stock price, falling nearly 10% in one day, which highlights the growing impatience among investors regarding the company's financial health and strategic direction. Centrica did see some positive customer growth with an increase in household customer numbers as they took on customers from collapsed suppliers, Rebel Energy and Tomato Energy, which helped mitigate the decline in underlying customers. Overall, O'Shea emphasized the importance of remaining disciplined in difficult market conditions while balancing the need for operational performance and investment in future growth to benefit shareholders and customers alike.