Former SSE boss takes £2.15m lump out of pension pot

According to the firm’s annual report, the request for the payment when he reached 60 was part of chief operating officer between 2002 and 2011 Colin Hood’s arrangements through an Unfunded Unapproved Retirement Benefit Scheme.

Once tax and National Insurance had been taken off, a net amount of around £1.1m would be left, said the report, which also explained that the decision to make the payment had been done while taking into account the “financial health” of the company.

Mr Hood has also been a non-executive director at FirstGroup and was on the board for Glasgow 2014 Commonwealth Games.

SSE’s annual report also revealed that chairman Lord Smith of Kelvin was paid £370,000, while chief executive Alistair Phillips-Davies saw his pay fall from £2.75m to £2.3m.

Mr Phillips-Davies received a basic salary of £805,000, up from £702,000, in the 12 months to March 31 this year. He also got pension contributions worth £965,000, an annual bonus of £515,000 and other benefits to the value of £26,000.

The overall reduction in his pay package was mainly as a result of lower pension contributions and no long-term bonus vesting over the year.

The report notes finance director Gregor Alexander was paid £1.4m, down from £1.77m.

Mr Alexander saw his basic salary increase from £594,000 to £622,000 but there was a reduction in his pension contributions and also no long-term bonus payment.

Both Mr Phillips-Davies and Mr Alexander are to get 2.4 per cent increases in their basic levels of pay.