The head of Centrica, the parent company of British Gas, received over £4.7 million in salary and benefits last year despite a drop in profits. Chief executive Chris O’Shea’s salary of over £1 million was supplemented by nearly £3.6 million in bonuses. This occurred as many British Gas customers are facing high energy bills.
Mr. O’Shea’s compensation was granted despite Centrica’s underlying profits decreasing to £814 million in the previous year from £1.55 billion in 2024. One contributing factor was a loss in the British Gas sector due to warmer weather, resulting in an £80 million impact as customers reduced their heating usage.
Additionally, more households transitioned to lower-cost fixed tariff agreements. Although the household supply business still generated £163 million in profits, it was a decline from £269 million in 2024.
Despite facing shareholder disapproval at the previous year’s annual general meeting, Mr. O’Shea’s total pay for 2025 was £4.73 million, down from £5.08 million in 2024. His compensation package has been a subject of controversy, especially after acknowledging challenges in justifying an £8.2 million payment in 2023.
Centrica announced a 3% increase in Mr. O’Shea’s annual pay to £1.13 million starting from April 1, along with a 3% to 4% average pay raise for the wider workforce. In 2025, his pay ratio compared to the average employee at Centrica stood at 71:1.
Carol Arrowsmith, the chair of Centrica’s boardroom pay setting committee, stated that the pay adjustments for Mr. O’Shea were in recognition of the company’s achievements and milestones throughout the year. The board believes that his remuneration aligns with market standards considering Centrica’s size and complexity.
Commenting on the results, Mr. O’Shea emphasized the challenging environment but highlighted the business’s strong operational performance and customer growth across all retail sectors. British Gas observed a 1% increase in household customers in the UK and Ireland, reaching 7.96 million, with 7.5 million in the UK. The company’s expansion was partially due to acquiring the customer bases of failed suppliers Rebel Energy and Tomato Energy.
British Gas, once the UK’s largest household energy supplier, was surpassed by competitor Octopus Energy last year. Industry experts predict a 7% reduction in Ofgem’s energy price cap, with an anticipated decrease of £117 to £1,641 annually for a standard dual fuel household starting April 1.
This reduction follows Chancellor Rachel Reeves’ announcement in the previous Budget that the average household bill would decrease by £150 from April due to the elimination of the Energy Company Obligation scheme introduced by the previous government.