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BBC chiefs' bonuses 'suspended' | BBC chiefs' bonuses 'suspended' |
(about 8 hours later) | |
Bonuses for the 10 most senior BBC executives are to be suspended indefinitely, the chairman of the BBC Trust has said. | Bonuses for the 10 most senior BBC executives are to be suspended indefinitely, the chairman of the BBC Trust has said. |
Writing in the Daily Telegraph, Sir Michael Lyons said some salaries could "appear too high" during the recession. | Writing in the Daily Telegraph, Sir Michael Lyons said some salaries could "appear too high" during the recession. |
Executives had already agreed not to receive pay rises or bonuses this year. | Executives had already agreed not to receive pay rises or bonuses this year. |
Salaries are likely to top the agenda in the BBC's annual report which comes out later, along with the Russell Brand and Jonathan Ross scandal. | |
The BBC Trust publication, which gives licence fee payers a chance to examine the corporation's activities, is expected to explain how staff handled the situation. | |
'Wage restraint' | |
The incident, which took place last October, saw Brand resign from his Radio 2 Show and Ross suspended for three months, while head of Radio 2 Lesley Douglas also quit her post. | |
Meanwhile, Culture Secretary Ben Bradshaw has said it is "self-defeating" of BBC managers to oppose plans to share the licence fee with other broadcasters. | |
The BBC said it would respond to the comments at a news conference on Tuesday. | The BBC said it would respond to the comments at a news conference on Tuesday. |
The corporation is currently trying to cut its costs and save £1.7bn between now and 2013. | The corporation is currently trying to cut its costs and save £1.7bn between now and 2013. |
Sir Michael's announcement came after widespread criticism of high salaries and expenses among BBC top brass. | Sir Michael's announcement came after widespread criticism of high salaries and expenses among BBC top brass. |
I think it is wrong-headed and ultimately self-defeating Culture Secretary Ben Bradshaw on the BBC's licence fee position | |
Writing in the Telegraph, Sir Michael said: "I can reveal that we have already reached agreement that Executive Board bonus payments will be suspended until further notice and not reintroduced without the Trust's approval." | Writing in the Telegraph, Sir Michael said: "I can reveal that we have already reached agreement that Executive Board bonus payments will be suspended until further notice and not reintroduced without the Trust's approval." |
He said the Trust had "consistently emphasised the need for wage restraint", although he acknowledged that competitive salaries were needed to retain the best staff. | He said the Trust had "consistently emphasised the need for wage restraint", although he acknowledged that competitive salaries were needed to retain the best staff. |
Sir Michael said: "We must, however, also ensure that we maintain the trust and confidence of those who pay for the BBC - the licence fee paying public. | Sir Michael said: "We must, however, also ensure that we maintain the trust and confidence of those who pay for the BBC - the licence fee paying public. |
"We have to be sensitive to the prevailing economic wind which currently can make the top BBC salaries appear too high." | "We have to be sensitive to the prevailing economic wind which currently can make the top BBC salaries appear too high." |
Last July, Director General Mark Thompson defended the decision to award pay rises of up to £107,000 each for the BBC's executive directors. | Last July, Director General Mark Thompson defended the decision to award pay rises of up to £107,000 each for the BBC's executive directors. |
'Feeling of despair' | 'Feeling of despair' |
He did, however, waive his own right to a bonus because of the "scale of disruption and uncertainty" facing his BBC colleagues. | |
But it is also facing new challenges to its funding after the government outlined proposals to allocate 3.5% of the licence fee to other broadcasters including ITV to fund the provision of regional news and children's programming. | But it is also facing new challenges to its funding after the government outlined proposals to allocate 3.5% of the licence fee to other broadcasters including ITV to fund the provision of regional news and children's programming. |
Mr Thompson said "under no circumstances" would it be a good idea and Sir Michael said it would "damage BBC output". | Mr Thompson said "under no circumstances" would it be a good idea and Sir Michael said it would "damage BBC output". |
But speaking to the Financial Times, Mr Bradshaw said they had lost the confidence of many of their senior staff over the issue. | |
He said: "There is almost a feeling of despair among a lot of highly respected BBC professionals. | He said: "There is almost a feeling of despair among a lot of highly respected BBC professionals. |
"I don't know why they have adopted this position. I don't think it's sensible. I think it is wrong-headed and ultimately self-defeating." | "I don't know why they have adopted this position. I don't think it's sensible. I think it is wrong-headed and ultimately self-defeating." |