This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2014/may/22/bt-gavin-patterson-bonuses-pay-chief-executive

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
BT boss Gavin Patterson to be paid up to £7m in first full year BT boss Gavin Patterson can collect up to £7m a year
(about 1 hour later)
The BT chief executive, Gavin Patterson, will be able to receive a maximum of £7m in his first full year in the job, although he will have to wait five years to collect the bulk of his rewards, under a revamped pay policy at the telecoms company. The BT chief executive Gavin Patterson will be able to earn a maximum of £7m a year in the top job under a revamped pay policy at the telecoms company.
The former head of BT's retail division, Patterson took over from Ian Livingston as chief executive in September, and is the mastermind behind BT's £2bn football broadcasting challenge to Sky, which will see the two companies go head to head in the next Premier League auction.The former head of BT's retail division, Patterson took over from Ian Livingston as chief executive in September, and is the mastermind behind BT's £2bn football broadcasting challenge to Sky, which will see the two companies go head to head in the next Premier League auction.
Patterson took a £50,000 pay cut last year, according to the BT annual report published on Thursday, collecting £4.25m. But the chief executive's base salary will rise by 2.7% from June this year, to £950,000.Patterson took a £50,000 pay cut last year, according to the BT annual report published on Thursday, collecting £4.25m. But the chief executive's base salary will rise by 2.7% from June this year, to £950,000.
The rise is in line with the mid range for BT managers and technical specialists. But the company has rejected demands for a 3% pay rise for staff and is offering 2% in negotiations with the Communication Workers Union.The rise is in line with the mid range for BT managers and technical specialists. But the company has rejected demands for a 3% pay rise for staff and is offering 2% in negotiations with the Communication Workers Union.
The remuneration committee, chaired by the former Sky chief executive Tony Ball (who is paid a fee of £82,000 a year by BT) has set new targets so that if Patterson performs exceptionally well, he could earn a further £6m a year in cash and shares bonuses.The remuneration committee, chaired by the former Sky chief executive Tony Ball (who is paid a fee of £82,000 a year by BT) has set new targets so that if Patterson performs exceptionally well, he could earn a further £6m a year in cash and shares bonuses.
BT says maximum payouts are far from guaranteed. The long-term scheme paid out 79% of the maximum last year, and 100% the year before that, but there were no payouts in 2006, 2007 and 2008.BT says maximum payouts are far from guaranteed. The long-term scheme paid out 79% of the maximum last year, and 100% the year before that, but there were no payouts in 2006, 2007 and 2008.
Patterson's maximum incentives are similar to Livingston's, but the company's pay policy has been changed to encourage its leaders to make longer-term decisions.Patterson's maximum incentives are similar to Livingston's, but the company's pay policy has been changed to encourage its leaders to make longer-term decisions.
The annual bonus has been reduced, in favour of a greater reward at the end of three years. Instead of a maximum of four times base salary in cash and shares for an exceptional performance, the limit has been towered to 2.4 times base salary. The annual bonus has been reduced, in favour of a greater reward at the end of three years. Instead of a maximum of four times base salary in cash and shares for an exceptional performance, the limit has been lowered to 2.4 times base salary.
The long-term reward for exceptional performance, paid entirely in shares, has been increased from 2.5 times salary to four times. It is decided after three years but Patterson will have to wait a further two years before collecting it.The long-term reward for exceptional performance, paid entirely in shares, has been increased from 2.5 times salary to four times. It is decided after three years but Patterson will have to wait a further two years before collecting it.
Hall told shareholders: "We believe that these restructured packages will incentivise and reward our executive directors to deliver long-term, sustainable profitable revenue growth, in line with our business strategy and shareholder interests, without encouraging inappropriate risk-taking."Hall told shareholders: "We believe that these restructured packages will incentivise and reward our executive directors to deliver long-term, sustainable profitable revenue growth, in line with our business strategy and shareholder interests, without encouraging inappropriate risk-taking."
The annual report shows that Livingston, who quit to become trade minister, collected £11.6m for his final year in office. The telecoms giant decided to grant him half of the outstanding shares that he would normally have forfeited for leaving the company.The annual report shows that Livingston, who quit to become trade minister, collected £11.6m for his final year in office. The telecoms giant decided to grant him half of the outstanding shares that he would normally have forfeited for leaving the company.
Livingston left about £9m of unclaimed share awards on the table but was granted others worth £10.1m. He also collected a £1.495m pro-rated salary, pension contributions and bonuses for the year. At the time, BT's shares were trading at 12-year highs after Livingston's success in reshaping its finances.Livingston left about £9m of unclaimed share awards on the table but was granted others worth £10.1m. He also collected a £1.495m pro-rated salary, pension contributions and bonuses for the year. At the time, BT's shares were trading at 12-year highs after Livingston's success in reshaping its finances.
Hall explained in the annual report: "The committee noted that Ian was not pursuing another commercial opportunity and was taking a role in the national interest. Ian did not leave due to poor performance and, indeed, in reflecting on Ian's five-year tenure as chief executive the committee recognised the transformation of the company under his leadership and the foundation that Ian provided for future growth."Hall explained in the annual report: "The committee noted that Ian was not pursuing another commercial opportunity and was taking a role in the national interest. Ian did not leave due to poor performance and, indeed, in reflecting on Ian's five-year tenure as chief executive the committee recognised the transformation of the company under his leadership and the foundation that Ian provided for future growth."
In 2013, Patterson received £772,000 in base salary, benefits including a car or cash in lieu of a car, home security, health insurance and telecoms services worth £43,000, an annual bonus of £1.3m, a long-term incentive bonus worth £1.9m, and pension contributions worth £188,000. His pay was lower last year due to a smaller long-term bonus payout.In 2013, Patterson received £772,000 in base salary, benefits including a car or cash in lieu of a car, home security, health insurance and telecoms services worth £43,000, an annual bonus of £1.3m, a long-term incentive bonus worth £1.9m, and pension contributions worth £188,000. His pay was lower last year due to a smaller long-term bonus payout.