Full ahead for BAE gravy train

DEFENCE equipment group BAE Systems may soon have to defend some chunky payments to top executives for a year in which it was hit by cost overruns and lost a net £296m.

Chief executive Mike Turner collected £1.23m in pay and perks - including a £491,000 bonus and £46,123 for accommodation in London.

His pension pot is worth £5.85m. BAE said the pay 'reflects improved company performance'.

Chairman Sir Richard Evans got £416,000 for a three-day week - before his £332,000 pension which, at 61, he is already drawing. His pension pot is £6.3m.

Eight directors have pension pots above the planned £1.5m Government cap. BAE often tops them up further.

Sir Charles Masefield, whose pot is £4.2m, retired in February 2003 and got £235,000 afterwards as a part-time 'overseas representative'.

Executive options are triggered by real earnings growth of a modest 3% a year. The shares' poor performance limits bosses' gains. They fell from 482p to 104p in four years, then rallied to 201p.

Six directors were awarded a total 2.4m options last year at 172p. The gains so far are small, but will rocket if the shares ever recover their old glory.

BAE has just won a £60m US weapon sights contract, but has yet to land its long sought-after US merger.