BT today said it will rethink its executive pay strategy after shareholders fought back at the outgoing chief executive’s £2.3m pay packet.
The embattled telecoms group said it was “disappointed” at the results of a vote on its annual remuneration report, which saw 34 per cent of shareholders vote against the proposed pay.
Much of the investor concern was levelled at chief executive Gavin Patterson’s pay. The outgoing boss received a £1.3m bonus on top of his £1m base salary in the year to the end of March.
The telecoms firm said some shareholders felt the pay did not reflect the company’s underlying performance.
The bonus was announced in May, shortly after the company announced it was slashing 13,000 jobs and its shares had hit their lowest level in over five years.
BT said it will introduce a more “structured process” to help determine pay in the future.
“This will include taking into consideration a broader range of performance factors and wider circumstances when coming to a decision on pay outcomes,” it said in a statement.
In October BT named Worldpay boss Philip Jansen as its new chief executive. Jansen will take the reins in February 2019.
Shares in BT have recovered from their low point in May, but remain 10 per cent down since the start of the year.