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Mark Thompson's career in the balance over BBC payoffs Mark Thompson's career in the balance over BBC payoffs
(8 days later)
The decision by Mark Thompson, the former director general of the BBC and now chief executive of the New York Times, to go on the attack in the row over executive pay at the corporation is possibly one of the riskiest of his career.The decision by Mark Thompson, the former director general of the BBC and now chief executive of the New York Times, to go on the attack in the row over executive pay at the corporation is possibly one of the riskiest of his career.
Placing himself so firmly the centre of the scandal with an aggressive 25-page submission to a parliamentary committee in London is a high-stakes gamble which could either cement his position at The Gray Lady, one of America's most venerated media institutions, or potentially finish his career.Placing himself so firmly the centre of the scandal with an aggressive 25-page submission to a parliamentary committee in London is a high-stakes gamble which could either cement his position at The Gray Lady, one of America's most venerated media institutions, or potentially finish his career.
Thompson is less than a year into the job and is, according to insiders, already in a vulnerable position, with reports of friction between him and editorial staff over the direction he is taking the paper.Thompson is less than a year into the job and is, according to insiders, already in a vulnerable position, with reports of friction between him and editorial staff over the direction he is taking the paper.
His oversight of the regime that sanctioned overpayments to senior staff at the BBC had already made him a target for MPs on the UK parliament's public accounts committee (PAC). A defence of the payments seemed all the more difficult in July when the National Audit Office (NAO), the public spending watchdog, found that the BBC had paid £25m in severance settlements to 150 senior staff and in 14 cased had given more than it had been contractually obliged to. "The BBC has breached its own policies on severance too often without good reason," the NAO concluded.His oversight of the regime that sanctioned overpayments to senior staff at the BBC had already made him a target for MPs on the UK parliament's public accounts committee (PAC). A defence of the payments seemed all the more difficult in July when the National Audit Office (NAO), the public spending watchdog, found that the BBC had paid £25m in severance settlements to 150 senior staff and in 14 cased had given more than it had been contractually obliged to. "The BBC has breached its own policies on severance too often without good reason," the NAO concluded.
And there lies the central problem for Thompson. His 25-page submission to the select committee has already created a civil war with Lord Patten, the chairman of the BBC Trust, the corporation's regulatory and governance body – but has also renewed the focus on his role in having ultimate responsibility for the severance deals.And there lies the central problem for Thompson. His 25-page submission to the select committee has already created a civil war with Lord Patten, the chairman of the BBC Trust, the corporation's regulatory and governance body – but has also renewed the focus on his role in having ultimate responsibility for the severance deals.
Thompson already faces a claim by the former BBC Trust chairman, Sir Michael Lyons, that he was fully aware of how potentially controversial a £1m severance deal for his deputy director general Mark Byford would be. Lyons claimed Thompson told him: "I want as many fingerprints on this as possible."Thompson already faces a claim by the former BBC Trust chairman, Sir Michael Lyons, that he was fully aware of how potentially controversial a £1m severance deal for his deputy director general Mark Byford would be. Lyons claimed Thompson told him: "I want as many fingerprints on this as possible."
It is in this febrile atmosphere that Thompson will be grilled by the PAC, along with six other witnesses – five of whom, including Patten and Lyons, are likely to be hostile. The only other witness likely to be in his corner is Marcus Agius, the former Barclays bank chairman who used to be a BBC non-executive director and chaired the executive board remuneration committee. Agius was closely involved with Thompson in the severance payments policy that has come in for such criticism.It is in this febrile atmosphere that Thompson will be grilled by the PAC, along with six other witnesses – five of whom, including Patten and Lyons, are likely to be hostile. The only other witness likely to be in his corner is Marcus Agius, the former Barclays bank chairman who used to be a BBC non-executive director and chaired the executive board remuneration committee. Agius was closely involved with Thompson in the severance payments policy that has come in for such criticism.
A faltering performance would weaken his position in the eyes of his staff and readers of a paper that frequently opens itself to self-analysis and criticism in Margaret Sullivan's "public editor's column".A faltering performance would weaken his position in the eyes of his staff and readers of a paper that frequently opens itself to self-analysis and criticism in Margaret Sullivan's "public editor's column".
After a hugely successful broadcasting career, Thompson should have been enjoying an exciting renaissance at the New York Times after he arrived at the paper 10 months ago.After a hugely successful broadcasting career, Thompson should have been enjoying an exciting renaissance at the New York Times after he arrived at the paper 10 months ago.
However, before he even started, he was hit by the Jimmy Savile scandal at the BBC, forcing his new boss, the Times publisher and chairman Arthur Sulzberger Jr, to defend him. Thompson had said he knew nothing about Savile's child sex abuse, but it didn't stop his paper pointing out that "As Scandal Flared, BBC's Leaders Missed Red Flags".However, before he even started, he was hit by the Jimmy Savile scandal at the BBC, forcing his new boss, the Times publisher and chairman Arthur Sulzberger Jr, to defend him. Thompson had said he knew nothing about Savile's child sex abuse, but it didn't stop his paper pointing out that "As Scandal Flared, BBC's Leaders Missed Red Flags".
In the last fortnight there has been talk of a painful rift developing between New York Times editors and executives over a new vision for the paper, with reports in a lengthy New York magazine article that editor Jill Abramson feels "isolated" and of Thompson loftily telling another executive "I could be the editor of the New York Times".In the last fortnight there has been talk of a painful rift developing between New York Times editors and executives over a new vision for the paper, with reports in a lengthy New York magazine article that editor Jill Abramson feels "isolated" and of Thompson loftily telling another executive "I could be the editor of the New York Times".
It is against this background that Thompson will try to best his critics before the PAC on Monday afternoon. But his central problem is that MPs on the committee grilling him about the severance deals have already decided that the payments were part of a "snouts in the trough" culture and of "an outrageous waste of licence fee payers' money".It is against this background that Thompson will try to best his critics before the PAC on Monday afternoon. But his central problem is that MPs on the committee grilling him about the severance deals have already decided that the payments were part of a "snouts in the trough" culture and of "an outrageous waste of licence fee payers' money".
Thompson, who ran the BBC between 2004 and 2012, appears to be in a tight spot, but one former colleague told the Observer they find it hard to believe he has not thought through the consequences. "Mark is a very calculating person and he does not do anything out of pique. He will have decided that there needed to be a battle and he must have had good reasons for it."Thompson, who ran the BBC between 2004 and 2012, appears to be in a tight spot, but one former colleague told the Observer they find it hard to believe he has not thought through the consequences. "Mark is a very calculating person and he does not do anything out of pique. He will have decided that there needed to be a battle and he must have had good reasons for it."
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