Punch directors earn 11.5% bonuses

Punch Taverns executive directors were awarded cash bonuses of up to 11.5% of base salary in the most recent financial year for exceeding specific performance objectives in the areas of disposals and debt reduction, according to the company's annual report.

The executive directors have otherwise had no salary increase in the past two years.

Chief executive Giles Thorley earned a basic salary of £525,000 plus bonus of £60,000 and other benefits to earn a total of £681,000 in 2009 compared to £1,506,000 the year before.

Finance director Phil Dutton earned a basic salary of £350,000 plus a bonus of £40,000 plus benefits to earn a total of £465,000 in 2009 compared to £399,000 the year before. 

Managed division boss Mike Tye earned £400,000 plus a bonus of £40,000 and benefits to earn a total of £508,000 compared to £53,000 the year before when he had only just joined the company.

Tenanted division boss Roger Whiteside earned a basic £315,000 plus a bonus of £32,000 and other benefits to earn a total of £397,000 having joined part-way through the financial year.

The 2009 annual report also reveals that the level of pay-offs for departing executive directors. Strategy director Jonathan Paveley, who was unveiled as the new executive chairman of Admiral Taverns yesterday, was paid £509,000 when he left the board on 29 January 2008, a figure which includes salary and pension paid from the date of cessation as director to his contract termination date, notice period and compensation for loss of office — he earned a total of £652,000 in 2009 compared to £524,000 in 2008.

Tenanted division boss Deborah Kemp was paid £420,000 on departure on 21 October 2008 to take her total earnings for the 2009 financial year to £471,000 compared to £388,000 the year before.

Managed division boss Andrew Knight was paid £284,000 on exit on 7 July 2008 which is the reported figure for total earnings in 2009 compared to £290,000 for the year before.

Meanwhile, pension payments to executive directors are set to become more generous. Punch has decided to lift the level of group contributions to Thorley's pension pot from around 12% of his £525,000 base salary to 18% this financial year, and 25% next financial year, which will equate to £131,250.

Other executive directors will see company contributions into their schemes rise to 20% of their salary. Punch has said that the move had brought the scheme "more in line" with market levels.