NFC chairman's salary rose 93pc says TUC
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PRIVATISATION of the National Freight Consortium in 1982 led to its chairman, Sir Peter Thompson, enjoying a salary rise of 93 per cent between then and October 1984, according to the Trades Union Congress.
A report called "Privatisation and Top Paysays that until 1982, the highest paid NFC director — Sir Peter — received £51,046 a year.
In the year after privatisation, the chairman and chief executive received an extra £1 8,450, which took the salary up to £69,496, ate report states. From October 1982 Sir Peter became chairman and chief executive of the NFC, and stood down as chief executive two years later.
And in 1983/84, he had another increase which took his salary, excluding bonuses, up to £98,292, the TUC says.
Five other NFC directors earning over £40,000, compared with none in 1983 and 1982, it adds.
But the NFC says; "We are not making any excuses for it. In fact, we think he is rather underpaid.It insists that all of its directors are paid by performance.
Sir Peter's salary is worked out against the HAY Management Consultant annual salary survey which gives a guide to the proper size of his reward, and is then awarded by the board of directors, NFC says.
Before privatisation, senior management salaries were restrained, it adds.