Punch bosses enjoy double digit boost to basic pay
Punch executive directors have been awarded double digit increases in basic salaries and a 50% increase in the potential size of bonuses in the current financial year after non-executives on the remuneration committee decided top-ups were needed to retain key talent.
Chief executive Giles Thorley has seen a 16.7% increase in basic salary in the 2007-2008 financial year, with a jump from £450,000 to £525,000. Commercial director Jonathan Paveley has seen his basic rise this financial year by 14.2% to £274,000. Spirit managing director Andrew Knight has also enjoyed a 14.2% rise to £274,000.
The company's annual report reveals that Thorley earned 74.6% of his 2006-2007 basic pay in bonus - a total of £335,000. Paveley earned 67.6% of basic pay in bonus - £162,240. Knight earned 52.6% of his salary in bonus - £126,240. Punch's executives were able to earn 100% of their salary in bonus last financial year if they meet performance criteria.
Despite the double digit increases in basic salaries, Punch's non-executives insist they remain below the relevant market median. In the current year, the maximum annual bonus has also been increased to 150% of salary.
A note in the 2007 annual report states: "This was necessary to maintain annual bonus at the upper quartile level, whilst the basic salary continues to be contained in a range of lower quartile to median and pension is limited to lower quartile."
Thorley, whose total compensation package was £1,368,000 in 2006-2007 including salary, actual bonus and other benefits, now has a total compensation target of £1,779,000 for the current financial year.
