Last time I looked, Directors of "International oil giants" salaries were not paid by the taxpayer.
It is very unwise even to take into consideration who picks up the tab for a post. The important consideration is whether the post is needed. If not, you don’t have a vacancy to fill; if you do need to find someone for the job then the market rate for the job has to be offered.
If an organisation sets the rate of pay too low, then they either don’t get applicants of the right calibre, or they run the risk of high staff turnover and the time and expense of advertising the vacancy again. If they set the rate too high they are wasting their own money and, in this case and the watchful eye that the Treasury and
DfT» will keep over managerial expenses, the fact that it taxpayer’s money that is paying for it will probably make no difference.
So, in short, if the going rate for one of those managers in wider industry is £174k, then £174k is going to be about the amount offered. How much “Pete” gets for an honest hour’s toil is neither here nor there in this context.