BSkyB chief Jeremy Darroch's pay slumps by 70%

Jeremy Darroch, the chief executive of BSkyB, took home £4.9 million in the 12 months to the end of June 2014, less than a third of the £17 million he was paid a year earlier.

Jeremy Darroch: the chief executive of BSkyB
Jeremy Darroch: the chief executive of BSkyB

Darroch received £12.5 million as part of a long-term incentive plan in July 2013 after shares, including 300,000 awarded to him in 2011 at the time of the News Corporation bid for Sky, vested at a share price of £8.35.

However, as the takeover bid failed following the News International phone-hacking scandal, no long-term incentive plan shares were vested for the year ending 30 June 2014.

Darroch earned £935,000 in basic salary in the 12 months to 30 June 2014, up 2.7 per cent year on year.

In terms of taxable benefits, such as company car or car allowance and healthcare, Darroch collected £17,907, compared with £17,122 in 2013. Sky’s contribution to his pension fell 5.7 per cent to £149,491.

His bonus was boosted by an additional £98,150 (or 5.3 per cent), reaching £1.9 million in the year to the end of June 2014. It is anticipated that Darroch will defer 50 per cent of this into a co-investment plan, as the executive directors did so last year.

In 2014, £1.8 million was put into a co-investment plan, compared with £1.6 million last year.

The report said: "[This is] the market value of the matching shares that vested on 31 August 2013 with a share price of £8.525, and the estimated value of matching shares that are due to vest on 30 August 2014, using the average share price over the period 1 April to 30 June 2014 of £8.818."

Andrew Griffith, the chief financial officer, received £2.4 million in the year to 30 June 2014, also less than a third of his pay a year earlier and down 71.4 per cent year on year. Griffith’s pay decline was also largely due to the absence of the shares granted at the time of the News Corp deal.

Nick Ferguson, a non-executive director, took home £462,375, up 2.8 per cent year on year.

Last week, Sky revealed a 6 per cent year-on-year increase in revenue to £1.9 billion for the three months to 30 September 2014.

The broadcaster put this down to strong demand from customers as Sky processed 760,000 new paid-for subscriptions.

It also saw revenue for Sky Store, which allows customers to buy or rent films through their TV more than double year on year. Transactions for Now TV Sports trebled year on year.

Sky reported ad revenue from AdSmart, which helps advertisers serve different ads to different Sky households, increased by 48 per cent on the previous quarter.

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