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Sir
Christopher Bland’s contract entitles him on termination
of his contract by BT to payment of salary and the value
of benefits until 12 months from notice of termination.
Ben Verwaayen’s contract entitles him on termination
of his contract by BT to payment of £700,000.
The contracts of Pierre Danon, Andy Green, Ian Livingston
and Paul Reynolds entitle them on termination of their
contract by BT to payment of salary and the value of
benefits until the earlier of
12 months from notice of termination or the director
obtaining full-time employment.
If
the contract of an executive director is terminated
by BT within one year after BT entering into a scheme
of arrangement or becoming a subsidiary of another company,
he will be entitled to receive his salary, the higher
of that current year’s on-target bonus or the previous
year’s bonus, the market value of shares awarded
under an employee share ownership plan or deferred bonus
plan that have not vested, together with a year’s
salary and the value of any benefits.
The
Committee intends to review contracts in the 2004 financial
year taking into account the joint statement of best
practice on executive contracts and severance, published
in December 2002 by the Association of British Insurers
and the National Association of Pension Funds, and other
relevant guidelines.
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