Soaring energy prices have resulted in £3.3 billion profits at British Gas owner Centrica – and unlocked a bonus of up to £1.6 million for a Fife native.
Centrica’s controversial chief executive Chris O’Shea, born in Kirkcaldy and raised in Glenrothes, is paid an annual salary of almost £800,000.
Like most FTSE100 CEOs he also receives a bonus related to performance.
Last year he waived a £1.1m bonus as customers grappled with the cost-of-living-crisis.
He is being urged by campaigners to reject this year’s £1.6m bonus, but today said it is “too early” to discuss refusing the windfall again.
A year ago he denied he was motivated by money.
Mr O’Shea said: “If money motivated me I wouldn’t be here.
“Money is a hygiene factor; you’ve got to have something in the right ballpark but I’m not coin-operated.”
He holds strong views on fracking and earlier this year he apologised for the way debt collectors forced people who could not pay their bills to have prepayment meters fitted.
Who is Chris O’Shea?
He was born in Kirkcaldy in October 1973 and left Fife at the age of 11, moving to Glasgow after a turbulent time for his parents’ business.
In an interview with The Times last year, he said: “My whole life was uprooted and the one bit that was stable was a family friend who was also the accountant.”
Mr O’Shea then went to comprehensive school and after not being accepted into Oxford to study law, he studied accounting at Glasgow University.
He also still watches Celtic FC with his school friends.
O’Shea started out as a chartered accountant and worked for companies including Ernst & Young and Shell before joining Centrica in 2018.
After roles as chief financial officer and interim chief executive, he took up his present position in April 2020.
The 49-year-old is married with three children and now lives in Reading.
Headlines and apologies
A Times investigation earlier this year exposed the ways debt collectors forced entry into vulnerable people’s homes to fit pre-payment meters.
Mr O’Shea said he was “really, really sorry”.
He told Sky News: “We’ve clearly got it wrong here and we are going to fix that.”
He said contractor Arvato “let us down” but ultimately accepted he was “accountable”.
The scandal sparked an urgent inquiry by regulator Ofgem and has seen Centrica banned from force-fitting pre-payment meters.
Last year he prompted headlines due to his views on fracking.
The UK government placed a moratorium on fracking in 2019, amid fierce local opposition and fears of earthquakes.
However, Mr O’Shea said there needed to be an “informed debate” about it.
Mr O’Shea told BBC Radio 5Live’s Big Green Money show: “The key question is, do we want to source our gas from overseas? Or do we want to have more gas domestically? And shale is certainly worth exploring.”
Rampant profiteering
Centrica’s extraordinary profits have now put Mr O’Shea back in the spotlight.
The energy giant reported underlying operating profits of £3.3 billion against profits of £948 million in 2021.
Trade union Unite hit out at “rampaging energy profiteering” and Centrica’s treatment of customers.
Today Mr O’Shea has highlighted the funds Centrica puts towards helping customers.
He said: “The energy crisis and cost of living pressures have created a challenging environment for customers and communities, but we have been able to provide much needed stability and support.
“It remains clear that some will continue to need help and we will do what we can to support them in the year ahead.”
Meanwhile Centrica’s share price rose by 5% in early trading on Thursday.
Will Chris O’Shea waive £1.6 bonus?
Mr O’Shea has refused to be drawn on whether he will waive his bonus for the past year.
The energy chief said it is “too early to have a conversation” about his potential bonus payout.
He added: “On the bonus, we’ve been a bit more efficient this year, and we’re a bit earlier in the process.
“Last year we reported a little bit later. It’s a bit early for us to say. The annual report will be published in March and it will have everything that you need.”
The boss is due to receive an annual salary of £794,375 for the past year, following a 2.5% increase.
The group’s annual incentive plan means that he could also be eligible for an almost £1.6m bonus if Centrica has matched long-term targets.
In 2021, Mr O’Shea’s pay was still 24 times that of the average Centrica staff member.
Last week, the End Fuel Poverty Coalition called on Mr O’Shea to once again reject any bumper bonus.
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