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BBC accused of snouts-in-the-trough culture over managers' payoffs BBC accused of snouts-in-the-trough culture over managers' payoffs
(2 months later)
The BBC has been accused by MPs of a "dereliction of duty" and a "snouts in the trough" culture over the controversial six-figure payoffs given to former senior members of its management.The BBC has been accused by MPs of a "dereliction of duty" and a "snouts in the trough" culture over the controversial six-figure payoffs given to former senior members of its management.
BBC director general Tony Hall and Lord Patten, chairman of the BBC Trust, faced sustained criticism from MPs on the Commons public accounts committee on Wednesdayover revelations that £60m had been handed to outgoing executives in the past eight years.BBC director general Tony Hall and Lord Patten, chairman of the BBC Trust, faced sustained criticism from MPs on the Commons public accounts committee on Wednesdayover revelations that £60m had been handed to outgoing executives in the past eight years.
The payouts, some of them bigger than the BBC was contractually obliged to give, were condemned by the Conservative MP Richard Bacon, who said they appeared to be a product of a culture of "mates slapping each other on the back, cronyism, snouts in the trough".The payouts, some of them bigger than the BBC was contractually obliged to give, were condemned by the Conservative MP Richard Bacon, who said they appeared to be a product of a culture of "mates slapping each other on the back, cronyism, snouts in the trough".
Hall, who became director general in April and has pledged to put a £150,000 cap on severance payments, said: "Culturally we'd lost the plot. We'd lost the way. We'd got bedevilled by zeros on senior salaries."Hall, who became director general in April and has pledged to put a £150,000 cap on severance payments, said: "Culturally we'd lost the plot. We'd lost the way. We'd got bedevilled by zeros on senior salaries."
Patten said he was dismayed by the full extent of the BBC's redundancy payouts, which he said he had not been aware of until the National Audit Office published its report last week.Patten said he was dismayed by the full extent of the BBC's redundancy payouts, which he said he had not been aware of until the National Audit Office published its report last week.
The role of the former director general Mark Thompson, who left the BBC last year and is now chief executive of the New York Times Company, also came under intense scrutiny by MPs.The role of the former director general Mark Thompson, who left the BBC last year and is now chief executive of the New York Times Company, also came under intense scrutiny by MPs.
The BBC trustee Anthony Fry, who also appeared before the committee, was asked by its chair, Labour MP Margaret Hodge, if Thompson had lied to him over the details of one of the most controversial payouts: the £949,000 awarded to former deputy director general Mark Byford in 2011.The BBC trustee Anthony Fry, who also appeared before the committee, was asked by its chair, Labour MP Margaret Hodge, if Thompson had lied to him over the details of one of the most controversial payouts: the £949,000 awarded to former deputy director general Mark Byford in 2011.
"I can't say he lied," said Fry. But he added that there was a "disconnect" between what Thompson had said in a memo to the BBC Trust about Byford's departure in 2010 and what the NAO revealed. Fry suggested to MPs that they ask Thompson, who is due to appear before the committee in the autumn, about the payout. "If you are asking me, was I expecting, when people like Mr Byford and others left the BBC, the scale of the payments they would receive would cause considerable public comment? Absolutely," said Fry. "Did I expect to find that in addition to what were already huge payments, that additional payments were made? No I didn't.""I can't say he lied," said Fry. But he added that there was a "disconnect" between what Thompson had said in a memo to the BBC Trust about Byford's departure in 2010 and what the NAO revealed. Fry suggested to MPs that they ask Thompson, who is due to appear before the committee in the autumn, about the payout. "If you are asking me, was I expecting, when people like Mr Byford and others left the BBC, the scale of the payments they would receive would cause considerable public comment? Absolutely," said Fry. "Did I expect to find that in addition to what were already huge payments, that additional payments were made? No I didn't."
Patten said Thompson had talked to the trust about two specific severance payments to departing executives, which were being made on contractual terms. "It was a question of shock and dismay for us to discover … they were even higher than they needed to be," he added.Patten said Thompson had talked to the trust about two specific severance payments to departing executives, which were being made on contractual terms. "It was a question of shock and dismay for us to discover … they were even higher than they needed to be," he added.
Asked if the trust should have known that the payouts were higher than the BBC was contractually obliged to give, Patten replied "yes", adding that he would be as interested as the committee to hear from Thompson as to why they were not told.Asked if the trust should have known that the payouts were higher than the BBC was contractually obliged to give, Patten replied "yes", adding that he would be as interested as the committee to hear from Thompson as to why they were not told.
Hodge described the payouts as an "outrageous waste of licence fee payers' money" and said the trust had failed to "exercise proper oversight". She said giving outgoing managers both redundancy pay and payment in lieu of notice, even when they had found other jobs, was "a fiddle to give them more money".Hodge described the payouts as an "outrageous waste of licence fee payers' money" and said the trust had failed to "exercise proper oversight". She said giving outgoing managers both redundancy pay and payment in lieu of notice, even when they had found other jobs, was "a fiddle to give them more money".
Fry said BBC salaries, when he joined the trust in 2008, were "completely out to lunch". But he added that when he raised the issue at one of his first meetings with BBC executives and members of the remuneration board, "people like me were asked to get back into our box".Fry said BBC salaries, when he joined the trust in 2008, were "completely out to lunch". But he added that when he raised the issue at one of his first meetings with BBC executives and members of the remuneration board, "people like me were asked to get back into our box".
The BBC's director of human resources Lucy Adams told the committee it was "custom and practice" for the BBC to pay out more to departing executives than their contracts entitled them to.The BBC's director of human resources Lucy Adams told the committee it was "custom and practice" for the BBC to pay out more to departing executives than their contracts entitled them to.
She said big payments had been made in order to cut the bill for senior management and "move the individual out of the door as soon as possible" in a period when the BBC was seeking to reduce costs.She said big payments had been made in order to cut the bill for senior management and "move the individual out of the door as soon as possible" in a period when the BBC was seeking to reduce costs.
However, Conservative MP Stewart Jackson said she had been guilty of a "dereliction of duty" and asked if she should consider her position. "This is corporate fraud and cronyism that you have presided over," he said. "Don't you think you should consider your own position over this?"However, Conservative MP Stewart Jackson said she had been guilty of a "dereliction of duty" and asked if she should consider her position. "This is corporate fraud and cronyism that you have presided over," he said. "Don't you think you should consider your own position over this?"
Adams responded that this was the way things were done when she arrived at the BBC. "I don't think it was acceptable for [Byford] to get such a large payment," she said. "At the time Mr Byford was aware of the custom and practice with regard to other executives, and Mr Thompson was keen for him to stay on to cover the royal wedding and restructure BBC journalism."Adams responded that this was the way things were done when she arrived at the BBC. "I don't think it was acceptable for [Byford] to get such a large payment," she said. "At the time Mr Byford was aware of the custom and practice with regard to other executives, and Mr Thompson was keen for him to stay on to cover the royal wedding and restructure BBC journalism."
Hall said in a letter to the committee that the payoffs scandal was an "institutional rather than an individual failing" and, in an apparent vote of confidence in Adams, indicated he would be working with her to put it right.Hall said in a letter to the committee that the payoffs scandal was an "institutional rather than an individual failing" and, in an apparent vote of confidence in Adams, indicated he would be working with her to put it right.
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