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Wood Group chief defers pay rise for one year

BOB Keiller, chief executive of oil services giant Wood Group has decided to defer for 12 months a 12.5% pay rise offered by the company.

Mr Keiller received £1.6 million last year in his first full year in the top job.

This was 58.4% up on the £1m he received in 2012 when he was chief executive of Wood Group PSN, the business he sold to the company in 2011.

Unusually, his package was dwarfed by that handed to outgoing chairman and former chief executive Allister Langlands who received nearly £1.8m after being paid extra for easing the change of leadership.

Mr Keiller's package for 2013 included £560,000 in salary, £14,000 in benefits, a £421,000 bonus, £545,000 from long-term incentive schemes and an £84,000 pension contribution

Mr Langlands took on the non-executive chairmanship in November 2012.

For 2013, he received £400,000 in basic pay, well above the standard chairman's fee at Wood Group which has been set at £275,000 for 2014.

He also got £14,000 in benefits, £298,000 as a short term bonus, £803,000 from a three-year incentive scheme, and £258,000 in pension benefits.

Wood Group said the extra pay received by Mr Langlands "reflected his significant time commitment to the group in providing necessary continuity at the top level following his appointment as chairman".

Nevertheless, his package was down on the £2.7m he got in 2012.

The company has decided to raise Mr Keiller's basic pay to £630,000 from the beginning of the year, up from £530,000, "to reflect his assumption of the full responsibilities and development as CEO". But he will not take the rise until 2015.

"After due consideration, Bob decided that given the need to show leadership on cost saving measures he would defer the approved increase for 12 months," Wood Group said in its annual report.

The average Wood Group UK employee got a 3% increase in basic pay last year, the report disclosed.

Mr Langlands is to step down in May to be replaced by Ian Marchant, the former chief executive of Perth-based energy company SSE.

The Scottish giant increased profits by 14% last year to $413m (£247m) as oil and gas firms increased production.

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