Pay hike is just the ticket for bus firm boss Souter

STAGECOACH co-founder and chief executive Sir Brian Souter has seen a double-digit increase in his pay package following a strong year for the Perth-based transport group.

His total pay-out would have been higher but for the second year running Souter waived 250,000 of the bonus he was entitled to, the cash instead going to help fund a medical screening programme for employees of the UK division.

Although his salary only edged up by 11,000 to 564,000, Souter saw the cash and shares bonus payment he received rise by 66,000 to 258,000, according to the company's latest annual report. Together with benefits his total pay package rose to 844,000, an increase of almost 11 per cent on the 762,000 he received the previous year.

But with Souter, pictured below, owning around 15 per cent of the company, his salary package is a relatively small part of his income. Following a 9 per cent hike in the full-year dividend payment, Souter will receive more than 7.7 million in dividend payments.

The board's only other executive director, finance director Martin Griffiths, received 344,000 in cash and deferred shares although that was down on the previous year. Together with a 382,000 salary, his total package was 836,000, down from 852,000.

Bob Speirs, who retired as chairman at the end of 2010, received 207,000 in fees compared to 150,000 the previous year. Total boardroom pay rose to 1.48m from 1.36m the previous year.

Last year Souter had pledged to donate a total of 1m towards the 2m cost of a voluntary heart screening programme for all employees in the company's UK bus division.

By the end of last month, just under 1,900 employees had signed up for the service which initially involves a basic health screening and assessment of an individual's risk factors.

Stagecoach's performance last year was boosted by increased use of public transport with commuters leaving cars at home because of high fuel prices.

Pre-tax profits rose by 27.5 per cent to 205.7m in the year to 30 April with group turnover rising by 10 per cent rise to 2.4 billion, boosted by growth at home and abroad.

The group's UK rail arm posted revenue growth of 4.2 per cent to 1bn, while operating profits increased by 16 per cent to 48.4m.

The regional UK bus division - which operates services in Aberdeen, Fife and the Highlands as well as several cities south of the Border - saw sales growth of 2.1 per cent to 893.6m. Operating profits rose 21 per cent to 153.1m.