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Press Releases
BBC directors waive bonuses
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The BBC's most senior management group has collectively decided not to take contractual bonuses for the financial year 2006/7.
The directors cited the scale of the challenge the BBC faces as it enters the new licence fee period and were mindful of the likely impact of this on all of their colleagues.
They also accepted that, although the BBC has made progress on diversity, they would not meet some specific commitments they had made on workforce numbers by the target date.
BBC Director-General Mark Thompson said: "Overall this has been a strong year for the BBC both creatively and managerially. All of my colleagues on the BBC Direction Group met the majority of their objectives and were eligible for bonuses as part of their contracts of employment. However, they and I have collectively decided to waive this contractual right on this occasion.
"I believe that this year is exceptional. Bonuses and the principle that a proportion of total remuneration should be dependent on performance are standard practice for senior managers throughout the public as well as the private sector. I have told my fellow directors that I would expect them to resume their participation in the BBC executive bonus plan, as long as performance objectives are met, in the usual way in future years."
Notes to Editors
1. Bonuses were formerly determined by the Remuneration Committee of the BBC Board of Governors. On the creation of the BBC Trust, this responsibility passed to the Remuneration Committee of the BBC Executive Board, which operates within a policy set by the BBC Trust.
The exception to this is the remuneration and bonus for the Director-General, which is determined by the Remuneration Committee of the BBC Trust. Up to ten per cent of base salary may be awarded. This year, the total amount that has been waived by the directors is c.£350,000.
2. The total remuneration, including bonuses, is published each year in the BBC's Annual Report and Accounts.
3. Diversity remains a creative opportunity for the BBC to engage all of the UK audience. Workforce diversity is one element of this. The BBC plans to announce a fresh programme of action in the autumn.
In 2000, the BBC set itself stretching workforce diversity targets to be met by 2003. These were:
- 10% for black and minority ethnic staff overall
- 4% for black and minority ethnic staff at the BBC's SM (senior manager) grade
These targets were met at 31 December 2003.
Subsequently in July 2005, the BBC set itself a target of 4% for the representation of disabled people within its workforce. These targets are to be met by December 2007.
In 2004, the BBC set itself a further set of stretching workforce targets to be met by 31 December 2007:
- 12.5% black and minority ethnic staff overall
- 7% for black and minority ethnic staff at the BBC's SM (senior manager) grade
4. The remuneration of John Smith, Chief Executive of BBC Worldwide, is on a different, commercial, basis. He has, however, voluntarily decided to forego a similar amount as his fellow directors.
BBC Press Office
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