Strong results see pay windfall for directors

Peter Crook, chief executive of doorstep lender Provident Financial, saw his total remuneration rocket 82 per cent to £1.3m after the group lifted profits amid a tough consumer environment.

Sub-prime lender International Personal Finance (IPF) upped its chief executive John Harnett’s total pay package by almost 23 per cent to £588,000 in 2010, a year which saw it return record profits.

Technology group Pace increased chief executive Neil Gaydon’s total remuneration by 12.4 per cent to £1.05m during a year when the Saltaire-based company became the world’s biggest set-top box maker.

Natural chemical group Croda increased chief executive Mike Humphrey’s pay and benefits package by 2.5 per cent to £1.26m after the group posted a 112 per cent profits hike.

Bradford-based Provident reported an 11 per cent increase in pre-tax profits to £144.5m during 2010.

Mr Crook’s 2010 pay package compared with £718,000 a year earlier. It included salary of £579,000 and a cash bonus of £595,000. Finance director Andrew Fisher’s total pay package surged 64 per cent to £879,000.

Provident said its remuneration policy is “based on the need to attract, reward, motivate and retain executive directors in a manner consistent with the long-term accumulation of value for shareholders and achievement of the company’s strategic objectives”.

Leeds-based IPF’s annual report revealed Mr Harnett’s total remuneration package included £450,000 basic pay and a £120,000 cash bonus. That was a 22.7 per cent increase on the £479,000 he received in 2009. He will also receive another £240,450 bonus in deferred shares.

The group’s finance director, David Broadbent, saw his total pay package surge 24 per cent to £350,000. He also earned a £134,750 bonus in deferred shares.

IPF said the group’s remuneration policy “is cognisant of the need to attract, motivate and retain talent via remuneration at appropriate market levels, and recognises the need for prudence and effective risk management in its reward structures”.

IPF’s pre-tax profits for the year to December 31 rose 49.3 per cent to £92.1m with an eight per cent increase in revenues to £608.7m.

Mr Gaydon, who has spearheaded Pace’s revival in fortunes, received a salary of £478,000 and a cash performance bonus of £460,000 in 2010. This year his salary will rise to £500,000 in the light of the “significantly increased turnover and international scale of the group”.

Pace finance director Stuart Hall saw his total pay package increase by 17 per cent to £653,000.

Last year Pace’s adjusted core earnings rose 36 per cent to £103.6m after it shipped 22.2 million devices, up from 17.2 million devices in 2009.

Sales rose 17.4 per cent to £1.33bn in the year to December 31. Pre-tax profits rose 1.7 per cent to £71.1m.

“The board believes that it is necessary to ensure that the remuneration packages of the executive directors remain competitive in order to attract, retain and motivate executive directors and senior managers of a high calibre and to reward them for performance,” said Pace’s remuneration report.

Snaith-based Croda posted a 112 per cent increase in pre-tax profits to £192.3m in 2010, and a 21 per cent rise in sales to £1bn.

Mr Humphrey’s £560,000 salary was matched with a bonus of the same value, the maximum possible award. Croda will ask for shareholders’ permission to increase his possible bonus entitlement to 200 per cent of salary from 2012 “if this is considered appropriate”.

Its finance director Sean Christie received a pay package 1.8 per cent higher at £635,341. His £309,500 salary was also matched with a 100 per cent bonus.

Mr Humphrey and Mr Christie will also receive salary increases of three per cent and 9.9 per cent respectively this year.

The company’s remuneration report said: “2010 was an outstanding year for Croda, particularly in light of the continuing tough global economic conditions.

“The results demonstrate the ability of our business to deliver growth in difficult market conditions and, in particular, the effective leadership of our highly regarded management team.

“The remuneration committee consider the remuneration paid to our management team to fairly reflect their performance during the year.”

All three remuneration reports will be voted on by shareholders. Croda shareholders meet on April 28, Provident’s AGM is on May 4, IPF’s on May 11 and Pace’s AGM on May 12.

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