The head of Centrica, the company that owns British Gas, received over £4.7 million in total compensation last year despite a decline in profits. Chief executive Chris O’Shea’s salary of more than £1 million was supplemented by nearly £3.6 million in bonuses. This comes at a time when many British Gas customers are facing high energy bills.
Despite a drop in underlying profits to £814 million in 2025 from £1.55 billion in 2024, Mr. O’Shea’s payouts remained substantial. Factors such as warmer weather costing British Gas £80 million and a shift to cheaper fixed tariff deals contributed to the profit decline in the household supply arm, which still earned £163 million, down from £269 million in 2024.
Mr. O’Shea’s total remuneration for 2025 was £4.73 million, a decrease from £5.08 million in 2024. Despite a shareholder rebellion at the previous year’s annual general meeting, where nearly 40% of shareholders opposed the board’s pay plans, the significant bonuses for Centrica’s CEO persisted.
The latest report indicates that Mr. O’Shea’s pay will rise by 3% to £1.13 million annually starting April 1. The company also announced average pay increases of 3% to 4% for its 22,000-strong workforce. In 2025, Mr. O’Shea’s pay ratio compared to the average employee salary at Centrica was 71:1.
The chair of Centrica’s boardroom pay setting committee, Carol Arrowsmith, acknowledged the company’s achievements and strategic milestones in the past year. The annual report noted that the adjustments to Mr. O’Shea’s compensation were in line with competitive market rates for a company of Centrica’s size and complexity.
Mr. O’Shea acknowledged the challenging business environment and variable performance across the company. However, he emphasized the company’s strong operational performance and the growth of its retail businesses. British Gas saw an increase in household customer numbers, reaching 7.96 million, with 7.5 million in the UK. Industry experts predict a 7% reduction in Ofgem’s energy price cap, providing potential relief to households from April 1.