BAE Systems' chief enjoyed an extra £400,000 in his bonus. (Source: Getty)
UK defence giant BAE Systems
awarded chief executive Ian King a 40.8 per cent pay rise in 2014, bolstering his total take home to £3.5m for 2014.
BAE Systems, the world’s third largest defence group, posted an 8.8 per cent drop in full-year sales from £18.2bn to £16.6bn for year while underlying earnings before interest, tax and amortisation fell from £1.93bn to £1.7bn.
King’s base salary stayed flat at £930,000, yet his total package rose by just over £1m thanks to bigger bonus payments.
In 2014, 93 per cent of the group’s sales were defence-related, with governments forming the overwhelming majority of BAE Systems’ customers.
In a letter to shareholders King said:
Through a continued focus on cost control, programme execution and efficiency, the Group is working to deliver continuous improvements in affordability for the UK customer to ensure that the Group's large, long-term contracts deliver both value and world-class capability.