Steve Marshall’s total remuneration rose to £447,366 after stepping up to executive chairman for eight months

Steve Marshall, executive chair of Balfour Beatty

Balfour Beatty’s chairman Steve Marshall saw his pay increase by two thirds in 2014 to £447,366, after stepping in to become acting executive chairman for eight months after Andrew McNaughton exited as chief executive last May.

Marshall’s annual income was doubled from £265,750 to £531,000 on assuming the executive chairman’s role to “reflect his additional responsibilities”, Balfour Beatty said in its annual report published last week.

His total remuneration for the year ended at £447,366, reflecting four months spent on the lower pay level and eight months at the higher level.

Balfour Beatty reported poor results for 2014 in March, with a £304m overall pre-tax loss for the year and a £317m operating loss within its UK construction business, which was dragged down by problem jobs and dire results in its M&E division.

Marshall stepped back to the role of chairman on 1 January this year when Leo Quinn joined Balfour as chief executive. Marshall will be replaced as non-executive chairman by former BHP Billiton executive Philip Aiken on 26 March this year, with Aiken appointed on an annual income of £270,000.

The remuneration report within Balfour’s annual report also confirmed Leo Quinn’s base salary is £800,000 for 2015, although his total remuneration for this year could rise to £2.3m through performance and share incentives if Balfour hits its targets, and up to a maximum of £3.5m if these targets are exceeded.

Despite McNaughton stepping down on 3 May 2014, the remuneration report reveals the board agreed he should continue to receive a base salary, car allowance and pension allowance, amounting to £66,333 paid monthly from May 2014 to the end of the year.