The chief executive of National Grid has been criticised after he saw his pay packet swell by more than £1m while Britons battle rising energy bills.
John Pettigrew landed a £6.5m payday for the year to the end of March 2022, a year which saw the country plunged into an energy crisis.
His package was up £1.1m on a year earlier and was boosted by nearly £4m handed out as part of a three-year plan to incentivise executives. Pettigrew will see his £1m salary increase by 3.75% from July.
His total remuneration far outstrips the £3.6m average pay packet recorded for FTSE 100 chief executives in 2021.
National Grid is a FTSE 100 company charged with transporting the nation’s energy and receives about £20 a year each from consumers through bills as part of an electricity transmission charge.
National Grid last month posted an 11% rise in operating profits to nearly £4bn in the 12 months to the end of March, boosted in part by an increase in revenues from subsea cables connecting electricity supply with Europe. The company has seen revenues from the cables improve because of volatility in the energy market and paid back £200m in revenues from the cables early last month.
Pay campaigners said that the company’s end consumers had little choice over where to receive their energy from, meaning the bumper pay packet was not justified. Households are wrestling with soaring energy bills, with the industry price cap expected to rise to about £2,800 this autumn.
High Pay Centre executive director Luke Hildyard said: “This is a management role essentially carrying out a public service. The National Grid chief executive didn’t invent electricity and most so-called customers don’t need much persuading to use it instead of candle light.
“Maintaining and developing their networks isn’t something that merits a gargantuan bonus, it should be seen as part of the job. The moral and business case for a payment this size, when many people can barely afford to cover the cost of the electricity that National Grid delivers, is very weak.”
The company said that “fair and equitable reward is at the heart of National Grid’s values” and noted the share price had risen more than 30% since the incentive plan was initiated.
Pettigrew joined the group in 1991 as a graduate and worked his way up through the ranks, becoming chief executive in April 2016. He also holds roles at the CBI business lobby group, pest control firm Rentokil and as a member of the government’s “inclusive economy partnership”.
National Grid is not expected to be hit by the government’s windfall tax on energy firms, but Pettigrew warned last month that the levy could hit investment in renewable energy.
Separately on Wednesday energy bosses giving evidence to MPs on the state of the sector warned that consumers and businesses are struggling with bills even before another hike later this year.
E.ON chief executive Michael Lewis said: “We are already seeing more customers falling into late payment.”
EDF strategy and corporate affairs director Paul Spence said government should consider extending measures introduced to help consumers with bills to businesses. He said: “Government has acted on the residential sector. Perhaps they need to look at what they can do to help businesses that have been and will be under increasing strain.”
