‘Overpaid' industry bosses named

HOSPITALITY companies listed in the FTSE 100 are overpaying their chief executives by as much as 81%, according to a new survey.

Research by the Sunday Times places Francis Mackay, chief executive of contract catering giant Compass, as the most overpaid among the industry's publicly quoted groups. His total pay including bonuses and share incentives, at £2.5m, is £2m too much, says the report.

The report bases its judgement on the value of a pay package including all incentives and compares it with other chief executives' pay, taking into account share price over three years. The survey also put a higher value on chief executives it believed were more likely to be head-hunted.

Bass's Ian Prosser, says the report, is overpaid by 51%, at just over £1m, and Gerry Robinson of Granada, on a similar pay level, is getting 39% too much.

Those in the FTSE 100 said to be underpaid include David Thomas, chief executive of Whitbread, who is paid £876,998, a shortfall of 28%, and Scottish & Newcastle boss Brian Stewart, at £784,328, who is underpaid by 33.6%.