We recognise that our approach to pay at the BBC – particularly to the amount paid to senior executives – plays a large part in demonstrating value for money to licence fee payers. Our approach to executive pay is to balance the need to attract high calibre people to manage the BBC with the need to ensure value for money.
In July 2011 we updated our senior management pay strategy to ensure that the BBC’s remuneration practices would not undermine the trust and confidence of the public we serve.
The new initiatives announced include:
• reducing the number of senior managers to around 1% of the total staff population
• withdrawing bonuses from all executive directors (where these had previously been frozen)
• improving the fairness of the BBC’s remuneration policy, by removing the entitlement for private health insurance for new senior managers
• publishing more information about the pay of senior managers.
We also agreed that every year we would publish a ‘pay multiple’ so the public can see exactly how the pay of those at the top of the BBC compares to the rest of the organisation. We do this by comparing the median pay of Executive Board members to median pay across all public service staff within the BBC. This allows licence fee payers to have a greater understanding of the amount paid to the BBC’s most senior executives, and allows the public to compare the BBC with other organisations who choose to publish this information. This information will be published each year in the annual report.
Dowload our report on the executive pay strategy for 2011 – 2015 below.
The previous executive pay strategy for the BBC was agreed by the Trust in 2009. Among other things, this strategy set a target to reduce the pay bill for senior management at the BBC by 25 per cent. The target was achieved by December 2011, ahead of the original target date.
You can read our 2009 executive pay strategy and associated correspondence here:
Each year we report on executive pay in the BBC’s annual report and accounts. In addition, the Executive publishes detailed information about the pay, expenses and interests of its most senior managers. Follow the links to the right for more information.
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