Press Office

Wednesday 24 Sep 2014

Press Releases

Email to BBC staff from Mark Thompson,

An email was sent to all BBC staff this morning from Mark Thompson, BBC Director-General.

The text of the email follows:

"Yesterday I held a meeting with the Senior Leadership Group to discuss the current financial position of the BBC.

"As many of you know, towards the end of last year, rising inflation was having an impact on our fixed income. Following the sharp decline in the commercial property market we announced that the sale of some of our property holdings – including Television Centre – was delayed.

"With the UK economy now officially in recession, and an accompanying decline in household growth, we anticipate that licence fee income will fall. This, coupled with volatility in inflation and energy costs, plus the daily turmoil of the stock market, is having a big impact on our income and spending power.

"A 'Strategic Contingency' exercise, led by a senior group of managers, has been looking at what additional funds might be needed, should we need to put aside additional funds to cover our current estimate of the financial risks we face. This exercise will look at additional savings which will come from tighter cost control, lowering overheads and slowing down some of our investment proposals. This is on top of our ongoing efficiency targets of 3% per annum.

"As part of this exercise, the Directors and I have agreed the following:

  • There will be no annual salary reviews or bonus awards for Senior Managers from grades SM2 up to the Executive Board until after July 2010
  • Salary negotiations will proceed as usual for staff grades 2-11 in the public services businesses and BBC Resources, although there will be no discretionary bonus awards until after July 2010
  • There will be no general review of salaries in the commercial businesses until after June 2010, although staff in BBC Worldwide and BBC World News will continue to be eligible for annual bonuses in line with existing contractual commitments

"I recognise that this is a tough message. However we believe it is the right decision for the BBC to take in these difficult times. The Directors and I have discussed this very carefully and concluded it is not appropriate to award an increase in pay or award a bonus this year to the senior managers of the organisation – but that we should continue with a modest pay review for the majority of the BBC's employees.

"I know from the quality of our output every single day that – despite the challenges we face – you share my determination to deliver distinctive and innovative programmes and content. I hope you understand why we have made these decisions regarding pay and bonuses for this year."

BBC Press Office

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