£25m options cheer for pubs chief

THE boss of pubs giant Punch Taverns is sitting on a near-£25m paper profit on share options, it emerged today.

Giles Thorley, chief executive of Punch since 2001, made a £3.57m gain on options he exercised last year alone. But figures revealed in the group's annual report show he still has an options package that would give him a further £24.6m. The lion's share of them can be cashed in from next May.

Thorley's option deals were mostly decided in 2001, before Punch floated in May the following year at 230p a share, a spokesman said. His two biggest tranches were granted at just 198p and 205p.

Since floating, the shares have rocketed to 666p amid strong profit growth and the renewed popularity of pub companies. The option awards dwarf Thorley's pay and bonus package last year of £634,000, up from £465,000 a year earlier.

On top of options granted under the so-called discretionary share plan, he will get a further £657,000 of shares if he hits certain targets under a long-term incentive plan.

Included in the £25m options package were 63,355 granted during last year on a performance-related basis. These are already in the money to the tune of £93,132.

A spokesman for Punch said: 'Giles's pay structure is directly aligned with the interests of shareholders and is subject to rigorous performance criteria.'

The group is now worth £1.6bn.