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SSE boss Ian Marchant receives £1m payout despite resignation SSE boss Ian Marchant receives £1m payout despite resignation
(4 months later)
The chief executive of energy company SSE, Ian Marchant, received an additional £1m in pay this March despite announcing in January that he was resigning.The chief executive of energy company SSE, Ian Marchant, received an additional £1m in pay this March despite announcing in January that he was resigning.
Marchant, whose company is battling to restore trust with consumers over high prices and doorstep mis-selling, was awarded a £30,000 increase in base salary to £870,000 in the last financial year.Marchant, whose company is battling to restore trust with consumers over high prices and doorstep mis-selling, was awarded a £30,000 increase in base salary to £870,000 in the last financial year.
He took home £2.6m, according to the annual report published on Thursday, up from £1.4m the year before. His pension payment rose from £380,000 to £680,000, but the biggest boost to his pay came from a long-term incentive scheme which paid out £1m in shares. There was no such payment last year.He took home £2.6m, according to the annual report published on Thursday, up from £1.4m the year before. His pension payment rose from £380,000 to £680,000, but the biggest boost to his pay came from a long-term incentive scheme which paid out £1m in shares. There was no such payment last year.
Marchant, whose customers have seen their average bill nearly triple during his 10 years as chief executive, will leave the company on 30 June.Marchant, whose customers have seen their average bill nearly triple during his 10 years as chief executive, will leave the company on 30 June.
He will be replaced by his deputy, Alistair Phillips-Davies, a member of the board since 2002, who will be paid a £755,000 salary – lower than Marchant's.He will be replaced by his deputy, Alistair Phillips-Davies, a member of the board since 2002, who will be paid a £755,000 salary – lower than Marchant's.
The SSE board has cut annual bonus payments by 40%, "in light of the Ofgem decision regarding sales processes for domestic energy customers". The regulator imposed a £10.5m fine this year after uncovering evidence of "prolonged and extensive" mis-selling.The SSE board has cut annual bonus payments by 40%, "in light of the Ofgem decision regarding sales processes for domestic energy customers". The regulator imposed a £10.5m fine this year after uncovering evidence of "prolonged and extensive" mis-selling.
Marchant waived the remaining portion of his bonus "in recognition that it is his last year in employment at SSE", and requested the £329,000 he could have collected be used to set up a fund to provide personal development opportunities for SSE employees.Marchant waived the remaining portion of his bonus "in recognition that it is his last year in employment at SSE", and requested the £329,000 he could have collected be used to set up a fund to provide personal development opportunities for SSE employees.
The remuneration committee also stated it had "sought assurances that the company is reviewing incentive arrangements for employees with leadership responsibilities in the area of domestic energy sales".The remuneration committee also stated it had "sought assurances that the company is reviewing incentive arrangements for employees with leadership responsibilities in the area of domestic energy sales".
At the time of the fine Marchant told the BBC he felt "deeply ashamed that a company I've been involved in, where I've been proud to be a leader, was involved in something that it should not have been."At the time of the fine Marchant told the BBC he felt "deeply ashamed that a company I've been involved in, where I've been proud to be a leader, was involved in something that it should not have been."
Marchant has waived his right to participate in the 2012 performance share plan, which pays out in 2015. He will however receive up to 70,400 shares from the 2011 plan when it pays out in 2014.Marchant has waived his right to participate in the 2012 performance share plan, which pays out in 2015. He will however receive up to 70,400 shares from the 2011 plan when it pays out in 2014.
Marchant leaves the company with a potential £15m nest egg, comprising a pension pot worth £10.5m, and share worth £4.6m at today's stock market value.Marchant leaves the company with a potential £15m nest egg, comprising a pension pot worth £10.5m, and share worth £4.6m at today's stock market value.
SSE reported a £112m tax payment in the last financial year. The annual report states that for every £1 spent on executive earnings, £50 was paid in tax, £124 on employee costs, £122 in dividend payments and £236 on capital expenditure.SSE reported a £112m tax payment in the last financial year. The annual report states that for every £1 spent on executive earnings, £50 was paid in tax, £124 on employee costs, £122 in dividend payments and £236 on capital expenditure.
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