Centrica, the parent company of British Gas, has disclosed that chief executive Chris O’Shea collected £3.6million in bonus payments and share awards during 2025, even as the energy giant’s profits plummeted by nearly half.
The firm’s annual report revealed Mr O’Shea secured a £1.4million annual bonus alongside £2.2million in long-term share incentives, supplementing his base salary of £1.04million.
These substantial payouts arrived alongside results showing underlying earnings collapsed to £814million from £1.55billion the previous year. An £80million hit from milder weather conditions significantly affected the household supply division.
Mr O’Shea’s overall remuneration totalled £4.73million for the year, representing a decrease from £5.08million in 2024. Centrica shares tumbled five per cent during Thursday afternoon trading, having earlier plunged as much as 10 per cent.
Chris O’Shea has pocketed a sizable bonus despite British Gas profits nearly halving
|
GETTY
The generous bonuses come against a backdrop of significant investor discontent. At last year’s annual general meeting, close to 40 per cent of shareholders rejected the board’s remuneration proposals in a notable rebellion.
Mr O’Shea has faced repeated scrutiny over his compensation in recent years. He previously acknowledged there was “no point” attempting to defend an £8.2million package he received in 2023.
The company’s remuneration committee defended the latest awards, stating in the annual report: “The committee believes that the adjustments to Chris O’Shea’s remuneration in 2025 aligned with competitive market rates given the size and complexity of Centrica.”
As well as this, the committee added that Mr O’Shea’s track record over five years justified positioning his pay between the median and upper quartile of FTSE 100 chief executives.
British Gas boss Chris O’Shea has hit back at Octopus Energy | PA
Britons have been saddled with record high energy bills in recent years
|
PAThe sharp share price decline followed Centrica’s announcement that it would suspend its buyback programme to focus resources on investment initiatives.
Mr O’Shea addressed the difficult trading conditions, stating: “The environment has been challenging, and performance has varied across the business.”
He emphasised the company had maintained discipline, achieving customer growth across all retail operations simultaneously for the first time in more than a decade.
The chief executive added: “Pausing the buyback enables us to prioritise investment that creates lasting value for shareholders, while continuing to deliver the reliable, affordable energy that households and businesses need to power economic growth through the transition.”
British Gas has published its latest financial results
|
GETTYHis salary will rise three per cent to £1.13million annually from April, with the 22,000-strong workforce receiving average increases of three per cent to four per cent. British Gas surrendered its position as the UK’s largest household energy supplier last year, with Octopus Energy claiming the top spot.
Customer numbers across the UK and Ireland edged up one per cent to 7.96 million, including 7.5 million British households. However, this growth was largely attributable to the absorption of 91,000 customers from collapsed suppliers Rebel Energy and Tomato Energy.
The household energy division saw earnings drop 39 per cent to £163million as warmer temperatures prompted customers to reduce heating usage and switch to more competitive fixed tariff arrangements.
Meanwhile, Cornwall Insight has forecast a seven per cent reduction in Ofgem’s price cap next Wednesday, potentially cutting typical dual fuel bills by £117 to £1,641 annually from April.