BT announces its executives will get a 2.5 per cent pay rise – just weeks after slashing thousands of jobs

 
Lucy White
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Gavin Patterson grabbed a £1.29m bonus last year (Source: Getty)

BT has handed its bosses a 2.5 per cent pay rise, just weeks after it said it would axe 13,000 jobs.

The changes, which will come into force next month, mean chief executive Gavin Patterson will now take home a base salary of £1.02m while chief financial officer Simon Lowth will pocket £717,500.

Last year, Patterson also received a £1.29m bonus – this was 130 per cent of his salary, as opposed to the 240 per cent maximum opportunity. The prior year his bonus was cancelled, after the telecoms giant was rocked by an accounting scandal and a profit warning.

The annual report, released today, also confirmed that former finance director Tony Chanmugam will not receive his deferred bonus which was to be awarded in the form of shares.

Read more: BT Group boss Gavin Patterson to forfeit bonus award over Italian accounting scandal

Both Patterson and Lowth received added rewards under the incentive share plan of 350 per cent of their salary last year.

Patterson's was cut from 400 per cent due to the share price fall he presided over, which will stick into this year. But chairman of the remuneration committee Tony Ball added: "It is the committee's intention to revert to an award of 400 per cent of salary next year assuming overall performance supports that move."

As for other employees, BT said it had agreed a "3.1 per cent annualised pay settlement for team members in the UK in 2018" and a 2.5 per cent "pay review budget" for increases to the UK managerial and professional team.

BT has begun a massive overhaul recently, as it announced along with job cuts earlier this month that it would quit its London headquarters.

Read more: Sky and BT Sport pay £4.46bn to share Premier League TV rights

In the annual report, it revealed changes were being made at the core of the business too. BT said all finance employees "have completed financial statement fraud awareness training" and a BT compliance committee had been created.

However, the company said it had disciplined 205 employees for "ethical misconduct", mostly due to "inappropriate use of company vehicles", while 98 of those people left BT.

Read more: BT slashes 13,000 jobs and quit London HQ to cut £1.5bn in costs

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