Former Aviva executive joins utility
New British Gas boss handed multi-million pound pay deal
Mark Hodges, who joins on 1 June, will receive up to £2.5 million a year if he exceeds his targets, with the prospect of a further £2.5m in cash and shares over three years.
His remuneration consists of £625,000 in basic salary and an annual bonus equal to the same amount if he hits his targets and twice that sum for outperformance.
In addition, there is an annual long term incentive award of up to 300% of salary based on a mix of financial and non-financial measures over three years, with any shares due released after five years.
The pay and bonus deal comes as an inquiry is under way into charging by utility companies. Mr Hodges may also face an immediate challenge if Labour comes to power next month. Ed Miliband has promised to freeze household energy prices and give consumers a better deal.
Mr Hodges, a former UK chief executive of Aviva, spent more than 20 years with the company, formerly known as Norwich Union.
Most recently he was group chief executive of Towergate Partnership, the specialist insurance broker.
Centrica said he brings a “strong understanding of the UK consumer market and a track record in improving business performance”. It said his experience of working in a regulated environment was another key factor in his appointment.
Ian Peters, interim managing director of British Gas, which trades as Scottish Gas north of the border, will remain with Centrica and take on the role of director, customer facing strategy.