Salary hike for energy boss while vulnerable struggle with bills

THE fat cat boss of under-fire energy firm SSE has seen his basic salary soar by almost 40% in just three months.

Former London banker Alistair Philips-Davies’s company provoked outrage when they ramped up energy bills by an eye-watering 8.2% last week bringing misery to their thousands of customers.

Experts predict the Perth-based company’s increase could kill vulnerable people unable to pay for fuel this winter.

Philips-Davies has enjoyed huge pay rises since taking over as CEO of the firm in July, just months after it posted operating profits of more than £410 million. Since replacing Ian Marchant after years as his right-hand man his basic salary has soared from £545,000 to £755,000.

Between 2012 and 2013 he also enjoyed a pay increase of 5.6% as his base salary rose from £516,000 to £545,000. But that amount doesn’t take into account the other financial perks Philips-Davies receives. In total last year, while he was still number two, he took home a package worth £1.8 million double what the average worker earns in a lifetime.

The 46-year-old has given a handful of interviews since last week’s shock announcement where he blamed the Government’s green policies for the rise in bills. But our request to grill him about the full extent of his salary package was turned down.

Yesterday our reporter went to the swish five-bedroom £1.8 million house he shares with wife Debbie in the exclusive neighbourhood of Barnton, Edinburgh. But there was no reply.

Last night campaigners branded Philips-Davies’s pay-package obscene.

Cathy Leech, of the Scottish Pensioners’ Forum, said: “It’s absolutely grotesque. It’s disgusting. How do the bosses giving themselves these sorts of salary increases look at themselves? It’s robbery. At least Dick Turpin had the decency to cover his face.”

John Swinburne, leader of The All Scotland Pensioner Party, added: “It’s unbelievable that someone is paid a salary like this and with such a huge increase while being aware of the increases they’ve made to energy bills.”

Last year as number two Philips-Davies’s £545,000 salary was boosted by a £206,000 incentive and £16,000 in other unnamed benefits. He also enjoyed a further £609,000 in a performance share plan. The incredible pay included a further pension pot of £460,000 giving him a total of £1.8 million.

Philips-Davies took over from Ian Marchant who stepped down in July after more than ten years. Marchant’s pay package in 2013 was in excess of £2.6 million. He left with a reported £15 million pay-off.

SSE defended the pay packet of their new chief.

A spokeswoman for the firm said: “It’s the decision of the remuneration committee of independent non-executive directors to apply this increase to Alistair’s salary on becoming the chief executive.

“Alistair’s total remuneration last year was £1.376m (without pension).

“His total this year has not been decided and will be dependent on his performance and that of the company.”

The SSE rise is likely to be replicated by the other big six energy providers, according to industry experts.