Stagecoach bosses saw pay packages fall after drop in profits

Executive directors at transport group Stagecoach saw their bonuses fall for the second year running after the company suffered a profits slide.

Chief executive Martin Griffiths saw his performancerelated bonus fall to £302,000 in the last financial year, from £334,000 previously, according to the Perth-headquartered group’s annual report.

His basic salary edged up by £12,000 to £639,000 although the lower bonus payout meant his total pay package dipped by £3,000 to £1.31 million.

Finance director Ross Paterson saw his pay package fall to £811,000 from £856,000. Co-founder and chairman Sir Brian Souter received fees of £213,000, up from £209,000. Last month the group reported a 36.8 per cent fall in annual profits and said it was selling the loss-making European arm of its Megabus budget coach business.

The group’s pre-tax profit of £104.4m was down from £165.2m a year earlier, despite revenues growing to £3.87 billion, from £3.2bn last time.

At the time Griffiths said: “We are experienced at managing the challenges we face, and the improvements and changes we are making now should ensure that we continue to have a strong portfolio of sustainable and growing businesses for the long-term.”

Despite the profits fall, Stagecoach proposed an increase in its final dividend to 7.9p a share, up from 7.3p a year ago, to be paid on 5 October.

Stagecoach co-founder and chairman Sir Brian Souter