Drinks group, Diageo, has given its chairman, Lord Blyth of Rowington, a pay rise bringing his salary for a three-day week to £450,000. He was being paid £300,000 for a two-day week. As part of the deal, Lord Blyth must invest £150,000 a year in Diageo shares, which he must retain as long as he is a director.

The group's annual report also showed that CEO, Paul Walsh,was paid £2.28m in the last financial year, up 30% from £1.75m the previous year. Walsh's 2001-02 remuneration comprised a basic salary of £738,000 and a £1.5m bonus. He also reaped £1.4m from long-term incentive payments.

Jack Keenan, the former CEO who left the company at the end of October 2001, was paid £779,000, a further £951,000 from longer-term incentives and £265,000 for a consultancy arrangement between November 1 2001 and June 30 2002. Finance director, Nick Rose, received a £809,000 bonus taking his total package to £1.3m.