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Former BBC DG's email outlines deputy's 'maximum payment' to trust | Former BBC DG's email outlines deputy's 'maximum payment' to trust |
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An email sent by former BBC director general Mark Thompson's office to the BBC Trust has revealed further details of the circumstances around Mark Byford's controversial £949,000 payoff from the corporation. | An email sent by former BBC director general Mark Thompson's office to the BBC Trust has revealed further details of the circumstances around Mark Byford's controversial £949,000 payoff from the corporation. |
The email, sent on 8 October 2010, said Byford, then the BBC's deputy director general, and Sharon Baylay, the marketing and communications chief also left the corporation, would receive "maximum payments". | The email, sent on 8 October 2010, said Byford, then the BBC's deputy director general, and Sharon Baylay, the marketing and communications chief also left the corporation, would receive "maximum payments". |
"From now until the individuals leave the BBC, they will be in consultation with the BBC," said the email from the head of the director general's office, Jessia Cecil, to BBC Trust director Nicholas Kroll. | "From now until the individuals leave the BBC, they will be in consultation with the BBC," said the email from the head of the director general's office, Jessia Cecil, to BBC Trust director Nicholas Kroll. |
"They will only get their formal and final letters confirming their redundancy arrangements when they are served with notice – in both cases, that will be in calendar year 2011." | "They will only get their formal and final letters confirming their redundancy arrangements when they are served with notice – in both cases, that will be in calendar year 2011." |
Although the decision to make Byford redundant was made in October 2010, he remained on staff for a further eight months before receiving his full redundancy payment, 12 months' salary worth £474,500, with a further £474,500 pay in lieu of notice. | Although the decision to make Byford redundant was made in October 2010, he remained on staff for a further eight months before receiving his full redundancy payment, 12 months' salary worth £474,500, with a further £474,500 pay in lieu of notice. |
BBC Trust chairman Lord Patten told MPs on the Commons public accounts committee on Wednesday that it was only after a report by the public spending watchdog the National Audit Office, published last week, that he was aware of the full extent of the payouts made to Byford and other senior executives. | BBC Trust chairman Lord Patten told MPs on the Commons public accounts committee on Wednesday that it was only after a report by the public spending watchdog the National Audit Office, published last week, that he was aware of the full extent of the payouts made to Byford and other senior executives. |
"We knew that severance payments were being made. We assumed and were told on two specific cases, which were the only time the director general talked to us about them, they were being made on contractual terms," said Patten. | "We knew that severance payments were being made. We assumed and were told on two specific cases, which were the only time the director general talked to us about them, they were being made on contractual terms," said Patten. |
"It was a question of shock and dismay for us to discover how many [payments] had been beyond contractual ... and even higher than they needed to be." | "It was a question of shock and dismay for us to discover how many [payments] had been beyond contractual ... and even higher than they needed to be." |
Asked by MPs whether the trust should have known more about the redundancy packages, Patten said: "Yes, and if you call in due course a previous director general of the BBC [Thompson] I will be as interested as you are in why we didn't know." | Asked by MPs whether the trust should have known more about the redundancy packages, Patten said: "Yes, and if you call in due course a previous director general of the BBC [Thompson] I will be as interested as you are in why we didn't know." |
Thompson's email appears to suggest that the trust, then headed by Patten's predecessor, Sir Michael Lyons, was told that Byford and Baylay would not be made redundant until the "calendar year 2011" (although it is not more specific than that). | Thompson's email appears to suggest that the trust, then headed by Patten's predecessor, Sir Michael Lyons, was told that Byford and Baylay would not be made redundant until the "calendar year 2011" (although it is not more specific than that). |
A spokeswoman for the BBC Trust said: "This is clearly an extreme overinterpretation of the correspondence referred to. | A spokeswoman for the BBC Trust said: "This is clearly an extreme overinterpretation of the correspondence referred to. |
"It predates Lord Patten's tenure as chairman. The correspondence was provided to the NAO in the course of their review, so it is not a new revelation. | "It predates Lord Patten's tenure as chairman. The correspondence was provided to the NAO in the course of their review, so it is not a new revelation. |
"It shows the trust seeking reassurances that the executive board remuneration committee – which has sole responsibility for the approval of executive remuneration – was content with the payments to Mark Byford and Sharon Baylay. | "It shows the trust seeking reassurances that the executive board remuneration committee – which has sole responsibility for the approval of executive remuneration – was content with the payments to Mark Byford and Sharon Baylay. |
"It did not contain a breakdown of the payments themselves, and no reasonable reading of this correspondence would have concluded that it indicates these individuals were to be given excessive pay in lieu of notice." | "It did not contain a breakdown of the payments themselves, and no reasonable reading of this correspondence would have concluded that it indicates these individuals were to be given excessive pay in lieu of notice." |
Exactly who knew what about the payouts – which both went beyond the pair's contractual terms – was a key question at Thursday's committee hearing. | Exactly who knew what about the payouts – which both went beyond the pair's contractual terms – was a key question at Thursday's committee hearing. |
The BBC trustee Anthony Fry was asked by committee chair, Labour MP Margaret Hodge, if Thompson had lied to him over the details of Byford's payout. | The BBC trustee Anthony Fry was asked by committee chair, Labour MP Margaret Hodge, if Thompson had lied to him over the details of Byford's payout. |
"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. | "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 the committee that they should ask Thompson about this. Thompson, who left the BBC in September 2012 and is now chief executive of the New York Times Company, is due to appear before the committee in the autumn. | Fry suggested to the committee that they should ask Thompson about this. Thompson, who left the BBC in September 2012 and is now chief executive of the New York Times Company, is due to appear before the committee in the autumn. |
Lucy Adams, the BBC's director of human resources, said she was not aware of the memo written by Thompson to the trust outlining the changes to the BBC's executive board, which included Byford's departure. | Lucy Adams, the BBC's director of human resources, said she was not aware of the memo written by Thompson to the trust outlining the changes to the BBC's executive board, which included Byford's departure. |
Asked by committee chair, Labour MP Margaret Hodge, if she had seen it, Adams said: "I don't believe so. I can't say for certain." | Asked by committee chair, Labour MP Margaret Hodge, if she had seen it, Adams said: "I don't believe so. I can't say for certain." |
Hodge replied: "I find that incredibly hard to believe. I don't believe it." | Hodge replied: "I find that incredibly hard to believe. I don't believe it." |
The email sent by the director general's office also confirmed that the executive board of the BBC's remuneration committee, at the time headed by the then Barclays chairman Marcus Agius, was "comfortable with what is proposed and has agreed to this being approved" by the committee. | The email sent by the director general's office also confirmed that the executive board of the BBC's remuneration committee, at the time headed by the then Barclays chairman Marcus Agius, was "comfortable with what is proposed and has agreed to this being approved" by the committee. |
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