Tuesday 14 August 2018

BT boss takes home £2.3m weeks after culling 13,000 jobs

BT
BT

Ravender Sembhy

BT boss Gavin Patterson is celebrating a £1m hike in annual pay, weeks after swinging the axe on 13,000 jobs.

Mr Patterson took home a total of £2.3m last year after trousering a £1.3m annual bonus, according to the telecom giant's annual report.

The pay packet also includes a £997,000 base salary and £299,000 in pension payments.

The chief executive's take home pay compares with £1.3m the previous year, when he was stripped of his annual bonus following an accounting scandal at the firm's Italian division.

The annual bonus was awarded for meeting a series of targets, including for customer service improvements and cash flow.

But it comes weeks after BT said it was culling 13,000 jobs as part of a revamped cost-cutting drive.

The company said the job losses would mainly affect back office and middle management roles, with two thirds of the cuts set fall on UK staff.

Remaining staff cuts are expected to impact on BT's operations abroad.

A BT spokesman said: "This has been a challenging year for the company but good progress has been made in a number of key areas.

"Gavin's total remuneration for the year was £2.3m, as a result of targets being met for customer service improvement and cash flow.

"Given the underlying financial and operating performance of the business during the year, the remuneration committee agreed Gavin's proposal that his bonus be capped at target."

BT is looking to cut costs by around £1.5bn as part of a three-year plan.

The telecoms firm is also hiring around 6,000 new employees "to support network deployment and customer service".

BT has around 106,400 employees globally, with 82,800 in the UK.

The annual report shows Mr Patterson was subject to a £338,000 malus provision linked to the accounting scandal, which rocked BT's share price and dented profits.

Press Association

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