Sky's the limit for new chief

BRITISH Sky Broadcasting awarded finance director Jeremy Darroch an entitlement to shares worth £1.18m on his first day at work.

Darroch, 41, left electrical retailer Dixons to replace Martin Stewart, who quit after failing to beat James Murdoch to the chief executive's job.

The satellite broadcaster is rewarding him with a £500,000 basic salary - 28% higher than at Dixons - and his annual bonus could soar to £600,000.

The 250,000 'free' shares do not vest until summer 2007. Their award is linked to earnings, cash flow, subscriber growth and 'total shareholder return'.

Darroch may struggle to tighten Sky's purse strings - Murdoch warned he would have to crank up spending to win subscribers.

His contract shows he will have a £60,000 car, medical insurance for his immediate family and two Sky Plus subscriptions so he can take his work home.

Darroch has a 12-month non-compete clause - shorter than the two-year clause that kept former chief executive Tony Ball twiddling his thumbs since he left last autumn.