As 4000 workerss are ear-marked to lose their jobs, dividend calculations look mighty tight since dividend of 12p a share is being distributed from earnings of 12.6p, even when those earnings are totted up on Centrica’s “adjusted” basis. Next year the City expects earnings of 14p, which is hardly a great leap forward. Yet CEO,Iain Conn was prepared to stick out his neck and say Centrica“expects” to keep the dividend intact until 2020.
Centrica chief executive, Iain Conn, avoided the indignity of cutting the dividend for a second time in three years and has probably saved his job as a result, at least for now. It will be 4,000 colleagues who lose theirs as the company embarks on another round of cost-cutting in search of stability.
He inherited a share price of 279p at the start of 2015 and it’s now just 142p.Last year he received a £4m pay package including a £759,000 bonus