BT chiefs take 10% pay cut
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sir Iain Vallance, chairman and chief executive of BT, took a cut of almost 10 per cent in his total pay to pounds 599,000 last year, writes Mary Fagan. The group managing director, Michael Hepher, also saw his pay fall by about 10 per cent to pounds 537,000.
The reductions in salary emerge in BT's annual report, which also reveals that one-year rolling contracts for directors will be introduced by August next year. At present, directors are employed under fixed three-year terms, which can be extended by a year on each anniversary of their joining the company.
In addition, the company's share option scheme has been scrapped and replaced with a long-term remuneration plan. During the year to 31 March, it was announced that Sir Iain made a profit of pounds 640,753 through exercising options on about 374,000 shares.
Under the new five-year scheme, which depends on BT meeting performance criteria relative to other FT-SE 100 stocks, shares will be held in trust and dividends invested in additional shares. Individuals will also have to invest part of their bonuses in BT shares to benefit from the scheme.
The awards each year are expected to take account of the views of shareholders. The scheme will be explained in more detail in notices to be sent out in advance of the annual general meeting in July.
The changes come as the business community awaits the report of the Government- backed Greenbury committee on the whole issue of boardroom pay and conditions. But Paul Bossonet, chairman of BT's remuneration committee, said: "We decided a year or so back to introduce one-year rolling contracts. A lot of people have been thinking about these things for a year or two now."
Mr Bossonet said that reductions in the pay of Sir Iain and Mr Hepher were caused by lower bonuses than the previous year. "The view was that although the company did well financially, it was an average year. Who knows what will happen in future?"
Mr Bossonet said the criteria for setting the level of bonus ranged from financial targets and quality of service to "how you get along with the regulator".
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments