Pain in the pocket for Power chief

INTERNATIONAL Power chief executive Peter Giller is set to become the FTSE 100's worst-paid boss after shares in the energy generator fell sharply.

At the time of the 2000 demerger from the old National Power, Giller gave up his £500,000-a-year package in favour of being paid only in shares in the company - 225,000 shares a year over three years in a deal that at the time had a notional value of £2m.

However, after a warning today that earnings per share in 2003 could slump by 30%, IP shares dived 15 1/2p /to 113 3/4p. At those prices, the second tranche of Giller's shares, due next month, is likely to be worth less than £250,000.

That makes him paid less than the previous worst remunerated FTSE boss Morrison Supermarkets' Sir Ken Morrison, who in any case receives far more in annual dividends.

IP, warning of sour US power markets post-Enron, reported a 43% rise in pre-tax profits to £141m in the first six months of 2002. The company does not pay dividends.