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BBC annual report reveals fall in star pay BBC annual report reveals fall in star pay
(40 minutes later)
The BBC has revealed for the first time how many of its TV and radio stars earn over £500,000 a year. The BBC has revealed for the first time how many of its TV and radio stars earn more than £500,000 a year.
The corporation's annual report says 19 stars were paid more than £500,000 in the year to March 2011, two fewer than the year before. The href="http://www.bbc.co.uk/annualreport/trust/overview/index.shtml" >corporation's annual report says 19 stars were paid more than £500,000 in the year to March 2011, two fewer than the year before.
The total paid to stars earning more than £1m was £14.6m - 14% lower than the year running up to March 2010.The total paid to stars earning more than £1m was £14.6m - 14% lower than the year running up to March 2010.
Overall spending on talent was down £9m - 4% - to £212m to March 2011. Executive salaries were also down.Overall spending on talent was down £9m - 4% - to £212m to March 2011. Executive salaries were also down.
Just over £100m was spent on talent salaries up to £50,000 for just over 50,000 individuals. Just over £100m was spent on talent salaries up to £50,000 for more than 50,000 individuals.
£7.39m was spent on presenters earning between £500,000 and £999,999. Some £7.39m was spent on presenters earning between £500,000 and £999,999.
But the details on star pay fell short of those requested by the former BBC Trust chairman, Sir Michael Lyons.But the details on star pay fell short of those requested by the former BBC Trust chairman, Sir Michael Lyons.
A year ago, Sir Michael asked for the number of presenters and other top talent to be published in narrower bands, as recommended by the Culture, Media and Sport Select Committee.A year ago, Sir Michael asked for the number of presenters and other top talent to be published in narrower bands, as recommended by the Culture, Media and Sport Select Committee.
He wanted the numbers of top talent to be broken down in the top three bands - £1m to £5m, £750,000 to £999,999 and £500,000 to £749,000 - but they have been grouped together in the report, so that the only information available is that 19 people earned over £500,000. He wanted the numbers of top talent to be broken down in the top three bands - £1m to £5m, £750,000 to £999,999 and £500,000 to £749,000 - but they have been grouped together in the report, so that the only information available is that 19 people earned more than £500,000.
The BBC's media correspondent, Torin Douglas, says lawyers advised the BBC that if they broke down the figures into smaller bands to reveal how many stars were paid between £1m and £5m, £750,000 and £999,999 and £500,000 to £749,999, individuals might be identified.The BBC's media correspondent, Torin Douglas, says lawyers advised the BBC that if they broke down the figures into smaller bands to reveal how many stars were paid between £1m and £5m, £750,000 and £999,999 and £500,000 to £749,999, individuals might be identified.
This would then risk breaching confidentiality agreements between the BBC and its stars.This would then risk breaching confidentiality agreements between the BBC and its stars.
Meanwhile, the BBC's current executive board members earned £2.7m in the year to May 2011, a 43% fall on the previous year.Meanwhile, the BBC's current executive board members earned £2.7m in the year to May 2011, a 43% fall on the previous year.
Each board member had also agreed to cutting one month's pay for two years' running - so the actual figure drops to £2.55m. Each board member had also agreed to cutting one month's pay for two years running - so the actual figure drops to £2.55m.
Director general Mark Thompson's salary fell by 27% - in last year's annual report, Thompson was shown to have earned £838,000, including pension top-ups.Director general Mark Thompson's salary fell by 27% - in last year's annual report, Thompson was shown to have earned £838,000, including pension top-ups.
But his salary during the year to May 2011 was £671,000 - he also gave up one month's pay, which resulted in a final figure of £615,000.But his salary during the year to May 2011 was £671,000 - he also gave up one month's pay, which resulted in a final figure of £615,000.
The fall in current executive pay is largely due to there now being only seven members - there used to be 10.The fall in current executive pay is largely due to there now being only seven members - there used to be 10.
On a like-for-like basis, the average executive board member at the BBC now receives nearly a quarter less pay and remuneration than a year ago.On a like-for-like basis, the average executive board member at the BBC now receives nearly a quarter less pay and remuneration than a year ago.
Mark Byford, Sharon Baylay and Erik Huggers left the BBC and were replaced by three new members - Helen Boaden, George Entwistle and Ralph Rivera, who are paid on average 33% less than their predecessors.Mark Byford, Sharon Baylay and Erik Huggers left the BBC and were replaced by three new members - Helen Boaden, George Entwistle and Ralph Rivera, who are paid on average 33% less than their predecessors.
Peter Salmon, director of BBC North, Lucy Adams, director of BBC People and Jana Bennett, president of BBC Worldwide, all stepped down from the board.Peter Salmon, director of BBC North, Lucy Adams, director of BBC People and Jana Bennett, president of BBC Worldwide, all stepped down from the board.
But other expenditure, including redundancy pay-outs for former members of the board, meant the total paid to the executive board actually went up during the year to March 2011, from £4.8m to £5.7m.But other expenditure, including redundancy pay-outs for former members of the board, meant the total paid to the executive board actually went up during the year to March 2011, from £4.8m to £5.7m.
Former deputy director general Mark Byford left with a £949,000 payout, while Sharon Baylay, who joined the BBC in May 2009 and left in November 2010, was paid £392,000.Former deputy director general Mark Byford left with a £949,000 payout, while Sharon Baylay, who joined the BBC in May 2009 and left in November 2010, was paid £392,000.
Senior management pay has also fallen - by June 2011, there were 540 senior managers at the BBC, down from 614 in the year from 2009/2010.Senior management pay has also fallen - by June 2011, there were 540 senior managers at the BBC, down from 614 in the year from 2009/2010.
BBC Trust Chairman, Lord Patten, has said this figure will be reduced further to about 200 by 2015.BBC Trust Chairman, Lord Patten, has said this figure will be reduced further to about 200 by 2015.
This will partly be achieved by re-grading posts although some posts will also be closed.This will partly be achieved by re-grading posts although some posts will also be closed.
By the end of the year, the senior management bill will be £60m - a £20m saving in two years.By the end of the year, the senior management bill will be £60m - a £20m saving in two years.
On average, new senior managers are paid 8.7% less than the previous post holder.On average, new senior managers are paid 8.7% less than the previous post holder.
In his speech to the Royal Television Society earlier this month, Lord Patten made clear that he wanted to curb BBC management pay.In his speech to the Royal Television Society earlier this month, Lord Patten made clear that he wanted to curb BBC management pay.
The corporation is facing cuts of between 17 and 20% after it was announced in October that the licence fee would be frozen for six years and the costs of the World Service were transferred to the BBC.The corporation is facing cuts of between 17 and 20% after it was announced in October that the licence fee would be frozen for six years and the costs of the World Service were transferred to the BBC.
BBC Worldwide's headline profits were up 10.3% to £160.2m - its highest level ever. The growth helped lift the overall return to the BBC by nearly 9% to £182m.