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.
The FTSE 100 company has been hit by governmental cuts to the defence budget in recent years, especially in the UK where the company cut 440 jobs last year in a bid to slash costs.
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.