EIGHT directors of the Scottish power-generating companies hold
executive share options worth more than #3.7m, according to figures
produced by Labour. In all, the party said, #100m in benefits had been
handed out to executives of privatised utilities in Britain.
The latest figures show that the 12 privatised regional electricity
companies in England and Wales had handed out share options worth more
than #50m to 65 directors -- more than #750,000 per director.
Labour claimed that a further #16m in share options handed out to the
directors of the new private water companies south of the Border had
pushed privatisation benefits for executives in all privatised utilities
to more than #100m.
In Scotland, the windfall has largely been for four directors of
ScottishPower, who hold options worth #3,340,956 -- nearly #840,000 each
-- at yesterday's share price. They could be worth more depending on
when the options are exercised.
At Scottish Hydro-Electric, four directors share a far more modest
#378,294 in options. The total for 145 directors of privatised utilities
UK-wide is #101,022,348.
Last night, Shadow Chancellor Gordon Brown said Labour would table
amendments to the Finance Bill currently being considered by the Commons
to curb privatisation excesses.
''Privatised industry remuneration packages are a new form of daylight
robbery,'' he said, ''a raid on millions of consumers paying more
because of them.''
Share option packages are a popular way of remuneration for top
executives. They allow directors to buy a number of the company's shares
at a low fixed price and resell them at a later date at their higher
market value.
The figures, based on annual reports and yesterday's share price for
each utility, are part of Labour's campaign to highlight what the party
considers executive pay excesses.
Of the regional electricity companies, the highest share option total
on offer is Seeboard's #7.8m for six directors. Among the water
companies North-west Water is offering #4.9m to five directors.
Among the country's five power generating companies, the packages
offered by ScottishPower and Hydro-Electric are dwarfed by those from
National Power (#7.2m) and Powergen (#15.2m).
Mr Brown added: ''We are now able to show how huge sums, unjustified
by effort, possible only because of monopoly, are being paid out. I
challenge Tory MPs to support our new proposals to curb boardroom
excesses when they are debated in the House of Commons.
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