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 Home >> Report on directors' remuneration >> Directors' remuneration

Directors' remuneration

Remuneration Review – the following pages comprise the ‘audited part’ of the Report on directors’ remuneration

Directors’ remuneration for the 2003 financial year was as follows:

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    Pension           Other        
  Basic allowance net benefits  
salary and of pension Total salary Annual Special Expenses excluding Termination  
fees contributiona and fees bonus bonusd allowance pensione Payments Total Totali  
 
2003 2002  
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000  
 
Sir Christopher Bland 500 – 500 – – – 12 – 512 461  
B Verwaayen c f 700 140 840 849 – 468 17 – 2,174 339  
P Danon b f g 450 – 450 338 – 19 22 – 829 480  
A Green f g 425 – 425 306 – – 30 – 761 366  
I Livingston b f g 445 116 561 338 190 19 8 – 1,116 –  
Dr P Reynolds b f g 400 – 400 288 – 19 25 – 732 338  
Sir Anthony Greener 90 – 90 – – – – – 90 86  
M van den Bergh 40 – 40 – – – – – 40 40  
C Brendish h 20 – 20 – – – – – 20 –  
L R Hughes 37 – 37 – – – – – 37 36  
Baroness Jay 35 – 35 – – – – – 35 7  
J Nelson 35 – 35 – – – – – 35 7  
C G Symon 37 – 37 – – – – – 37 8  
P Hampton k 36 – 36 – – – 5 242 283 747  
3,250 256 3,506 2,119 190 525 119 242 6,701 2,915  
a Balance or part of the pension allowance for the 2003 financial year – see ‘‘Pensions’’.
b Pierre Danon, Ian Livingston and Paul Reynolds each received a monthly cash allowance in lieu of a company car totalling £18,500 per annum.
c Ben Verwaayen is entitled to relocation expenses of £200,000 which were paid by the company during the 2003 financial year. He is also entitled to a housing allowance of £250,000 per annum until 13 January 2005. In the 2003 financial year, £250,000 was paid in respect of that year and a further £18,000 was paid in respect of the 2002 financial year (2002 – £36,000). These amounts are included in the table above under Expenses allowance.
d Ian Livingston received the sum of £190,000, which was paid in lieu of the bonus to which he would have been entitled had he remained with his previous employer. When added to his annual bonus his total bonus was £528,000.
e Includes some or all of the following: company car, fuel and driver, personal telecommunications facilities and home security, medical and dental cover for the director and immediate family, professional subscriptions and personal tax and financial counselling.
f Deferred bonuses payable in shares in three years’ time, were awarded to Ben Verwaayen £849,000 (2002 – £152,000), Pierre Danon £169,000 (2002 – £150,000), Andy Green £153,000 (2002 – £100,000), Ian Livingston £169,000 (2002 – nil) and Paul Reynolds £144,000 (2002 – £90,000).  When added to the amounts paid or payable for the 2003 financial year, in the table above, the total remuneration of Ben Verwaayen was £3,023,000 (2002 – £491,000); Pierre Danon £998,000 (2002 – £630,000), Andy Green £914,000 (2002 – £466,000); Ian Livingston £1,285,000 (2002 – Nil) and Paul Reynolds £876,000 (2002 – £428,000).
g Pierre Danon, Andy Green and Paul Reynolds joined the Board on 19 November 2001. Ian Livingston joined the Board on 8 April 2002.
h Clayton Brendish joined the Board on 1 September 2002.
i In the 2002 financial year, the aggregate emoluments of the directors of BT Group plc for their services following the completion of the BT restructuring on 19 November 2001 amounted to £3,018,000. The aggregate amount paid to directors as deferred bonuses payable in shares was £492,000. The aggregate of contributions paid under defined contribution arrangements was £3,975.
j Retirement benefits are accruing to three directors (2002 – two) under defined contribution arrangements and to three directors (2002 – four) under a defined benefit scheme.
k On the terms of his leaving the company on 30 April 2002, a termination payment of £217,500 was made to Philip Hampton, equivalent to the balance of the initial period of his service contract together with a sum of £9,000 in respect of benefits for that period. He also received £15,500 in lieu of holiday entitlement.

Sir Christopher Bland was appointed as part-time Chairman on 1 May 2001. His annual salary on appointment was £500,000.

Ben Verwaayen joined the company on 14 January 2002 on an annual salary of £700,000. He became Chief Executive on 1 February 2002.

Pierre Danon, Andy Green and Paul Reynolds joined the Board on 19 November 2001 on salaries of £450,000, £425,000 and £400,000, respectively.

Ian Livingston joined the Board on 8 April 2002 on a salary of £450,000.

The salaries of the Chairman and executive directors remained unchanged during the 2003 financial year and, following this year’s salary review, the Committee decided there should be no increase from 1 June 2003 in basic salaries.

Annual bonus awards to executive directors ranged from 72% to 121% of salary in the 2003 financial year. These payments are not pensionable.

 

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