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BBC did not lose plot over £1m pay-off, says Mark Thompson BBC did not lose plot over £1m pay-off, says Mark Thompson
(35 minutes later)
Ex-BBC director general Mark Thompson has told MPs the corporation had not "lost the plot" when it agreed a pay-off of almost £1m to his former deputy.Ex-BBC director general Mark Thompson has told MPs the corporation had not "lost the plot" when it agreed a pay-off of almost £1m to his former deputy.
He has accused the trust which oversees the BBC of "fundamentally misleading" Parliament by claiming it was unaware of the sum agreed for Mark Byford. He also accused Lord Patten, chairman of the trust which oversees the BBC, of "unfair and untrue" claims not to have known about Mark Byford's payment.
Trust chairman Lord Patten has denied those claims, calling them "bizarre". Lord Patten said he "couldn't have been expected to know" about the sum.
Mr Thompson told MPs the trust put him under "ferocious pressure" to make senior redundancies like Mr Byford's.Mr Thompson told MPs the trust put him under "ferocious pressure" to make senior redundancies like Mr Byford's.
The BBC has been criticised for paying £25m to 150 outgoing executives - £2m more than their contracts stipulated. The BBC has been criticised for paying £25m ($39m) to 150 outgoing executives - £2m ($3.1m) more than their contracts stipulated.
Mr Thompson is one of seven senior BBC giving evidence to the Public Accounts Committee. Mr Thompson - who is now chief executive of the New York Times newspaper - is one of seven senior BBC giving evidence to the Public Accounts Committee (PAC).
He was asked about a £949,000 pay-off package given to former deputy director general Mr Byford.He was asked about a £949,000 pay-off package given to former deputy director general Mr Byford.
He said Mr Byford's redundancy was part of a wider effort to cut the number of highly-paid executives at the BBC and had ultimately saved the corporation money.He said Mr Byford's redundancy was part of a wider effort to cut the number of highly-paid executives at the BBC and had ultimately saved the corporation money.
He said he believed he had the "full support" of the BBC trust in trying to do that.He said he believed he had the "full support" of the BBC trust in trying to do that.
Committee chairman Margaret Hodge said under Mr Byford's contract he could have been paid off with £500,000.Committee chairman Margaret Hodge said under Mr Byford's contract he could have been paid off with £500,000.
But Mr Thompson said he was paid almost twice that because the corporation wanted him to be "fully focused" on his job in the final months of his tenure and not "worried about his future".But Mr Thompson said he was paid almost twice that because the corporation wanted him to be "fully focused" on his job in the final months of his tenure and not "worried about his future".
Asked by Mrs Hodge if the BBC had "lost the plot", Mr Thompson replied: "I do not think we lost the plot."Asked by Mrs Hodge if the BBC had "lost the plot", Mr Thompson replied: "I do not think we lost the plot."
The BBC has subsequently introduced a cap on redundancy payments of £150,000, but Mr Thompson said it was right to do that after a string of large payments, including Mr Byford's, were made, not before.The BBC has subsequently introduced a cap on redundancy payments of £150,000, but Mr Thompson said it was right to do that after a string of large payments, including Mr Byford's, were made, not before.
'Shocked''Shocked'
Lord Patten and the BBC head of human resources Lucy Adams are also appearing before the PAC.Lord Patten and the BBC head of human resources Lucy Adams are also appearing before the PAC.
Alongside them are BBC trustee Anthony Fry, former trust chairman Sir Michael Lyons, trust director Nicholas Kroll and a former senior independent director, Marcus Agius.Alongside them are BBC trustee Anthony Fry, former trust chairman Sir Michael Lyons, trust director Nicholas Kroll and a former senior independent director, Marcus Agius.
A spokesman for the prime minister said "legitimate questions" had been raised about the use of licence payers' money and should be answered. Mr Fry told the PAC there had been "months and months of arguments" between the trust and the BBC executive committee over financial issues such as pay, perks and bonuses - although he admitted that severance packages were not given much attention.
Speaking ahead of the hearing, Lord Patten said he hoped the issue of severance could be discussed "without too much bitterness or wrangling because that is bad for the BBC". "It became a battleground. I got the distinct view... that our views were not being taken with what I believed was the seriousness they deserved," he said.
The hearing is a follow-up to a similar hearing in July which saw Lord Patten tell MPs he was "shocked and dismayed" by pay-offs totalling £25m to senior managers made between 2009 and 2012.The hearing is a follow-up to a similar hearing in July which saw Lord Patten tell MPs he was "shocked and dismayed" by pay-offs totalling £25m to senior managers made between 2009 and 2012.
He said that if Mr Thompson was called before MPs, he would be "as interested as you are, why we didn't know" about the payments.He said that if Mr Thompson was called before MPs, he would be "as interested as you are, why we didn't know" about the payments.
Mr Thompson - who left the BBC last year and is now chief executive of the New York Times newspaper - did not give evidence at that hearing. Ahead of the hearing, Mr Thompson sent a letter to the PAC saying statements by Lord Patten were inaccurate and the trust chairman had been "fully briefed" about settlements.
At central London's Portcullis House on Monday, he will be expected to answer allegations made in July that he had not been open with the trust about pay-offs to two senior executives - former deputy director-general Mark Byford and former marketing chief Sharon Baylay.
Ahead of the hearing, Mr Thompson sent a letter to the PAC, saying statements by Lord Patten were inaccurate and the trust chairman had been "fully briefed" about the two settlements.
He also said he had emails which showed that trust members approved the payments.He also said he had emails which showed that trust members approved the payments.
Mr Thompson's 13,000-word document included a briefing note prepared for Lord Patten on defending the size of the payments. He told the MPs on Monday he stood by those documents and said Lord Patten's claims not to know about the settlements were "damaging, unfair and misleading statements".
Another attachment challenged Ms Adams' claim, made at the hearing in July, that she did not know of an email explaining the pay-offs, and appeared to show that, in fact, she helped to compose it. In reply, Lord Patten said he took the charge of misleading the committee "very strongly" and had been told that payments given to Mr Byford and former marketing boss Sharon Baylay were "contractual payments".
"I'm in the position in which I'm accused of having misled the committee on something I didn't know and couldn't have been expected to know," he added.
Mr Thompson's 13,000-word document included a briefing note apparently prepared for Lord Patten on defending the size of the payments.
Another attachment challenged Ms Adams's claim, made at the hearing in July, that she did not know of an email explaining the pay-offs, and appeared to show that, in fact, she helped to compose it.
However, before Mr Thompson submitted his document, Ms Adams had already written to the PAC herself, admitting she made a mistake in her earlier evidence and had simply not recognised the email from its description.However, before Mr Thompson submitted his document, Ms Adams had already written to the PAC herself, admitting she made a mistake in her earlier evidence and had simply not recognised the email from its description.
The BBC Trust said it rejected the suggestion that Lord Patten and Anthony Fry misled the PAC.
It also denied Mr Thompson's claim it approved a £949,000 severance package for Mr Byford and said it had been "assured that the package was within contractual terms".
The biggest severance payments included:The biggest severance payments included:
The PAC meeting in July followed the publication of a report in which the National Audit Office criticised the corporation, saying the scale of the payments risked public trust.The PAC meeting in July followed the publication of a report in which the National Audit Office criticised the corporation, saying the scale of the payments risked public trust.
A spokesman for the prime minister said "legitimate questions" had been raised about the use of licence payers' money and should be answered.