THE boss of Corus has seen his pay increase by 19 per cent after the steel group achieved profits for the first time.

Chief executive Philippe Varin received total pay and benefits of £1.43m last year, compared to £1.2m in 2003. It included a bonus equivalent to 58 per cent of his salary, just below the maximum possible award of 60 per cent.

A spokeswoman said Corus's new-found profitability, a 16 per cent reduction in debt and a narrowing in the gap between the company and its rivals, had justified Mr Varin's award.

"The group's remuneration policy is designed to attract and retain high-calibre employees, in line with its strategy of becoming a world-class company," she said.

Corus announced it was increasing the maximum potential bonus for its chief executive to 100 per cent this year and to 80 per cent for executive directors.

Mr Varin, who oversaw a shake-up that helped Corus into the black for the first time last month, received a basic pay of £712,123 and a £414,282 annual bonus.

He also received taxable benefits of £271,514 and a relocation package of £35,925 to help him move to the UK.

Corus, formed in 1999, employs about 3,000 workers on Teesside and 1,700 at its Teesside Cast Products division.

Last month, it put an end to five years of losses. The improvement, from losses of £255m in 2003, came after it benefited from a sharp pick-up in steel prices and a major restructuring.

Since its formation, Corus has reported losses totalling more than £2bn and has shed thousands of jobs.