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 You are in:  Front Page > About Us > Annual Report
BBC World Service Annual Review 2001 | 2002
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5 Remuneration report
This report explains the remuneration policy of the BBC for the BBC World Service Management Board. Details of Management Board remuneration are included within Note 3c to the financial statements.
During 2001, the Governors approved the establishment of a sub-committee of the Board to act as a Remuneration Committee. This committee exists to deal with all matters relating to the remuneration of members of the BBC Executive Committee, including the remuneration package for the Director, BBC World Service and Global News. The remuneration of other members of the Management Board is recommended by the Director and approved by the BBC Director-General.
The Director assesses the performance of the Management Board members before recommending their annual remuneration and bonus awards. BBC World Service's HR Director provides technical support to the Director in this respect, but has no input into decisions affecting her own remuneration.
The BBC aims to ensure that the packages offered to Management Board members:
+ enable BBC World Service to attract, retain and motivate high-calibre executives
+ remunerate individuals fairly for individual responsibility and contribution, while providing an element of performance-related pay, reflecting the underlying performance of BBC World Service
+ take into account salary policy within the rest of the BBC and the relationship that should exist between the remuneration of Management Board members and that of other employees
The remuneration arrangements for Management Board members include the following components:
Basic salary
Basic salaries are reviewed in August each year, taking into account external market levels and internal comparisons as well as the individual's responsibilities and performance.
Annual bonus
Management Board members are eligible to receive a bonus of up to 10% of basic salary for meeting certain performance targets. Qualitative and quantitative objectives are set at the beginning of the financial year, and performance is reviewed at the end of the year. As a member of the BBC Executive Committee, the Director, BBC World Service and Global News, participates in a performance-based annual bonus scheme under which payments may be awarded of up to 30% of basic salary. Bonuses are reflected in the financial statements on an accruals basis for the performance period under review. Actual payments are made in August each year.
The Director is eligible for a company car and fuel for private use. Other Management Board members are eligible for a company car and some members are entitled to fuel for private use. All Management Board members are eligible for medical insurance covering the executive and family and, where there is a business need, digital reception equipment.
Management Board members are eligible to participate in the BBC Pension Scheme, which provides salary-related pension benefits on a defined benefit basis, with an accrual rate of 1/60th of final salary per year of service, subject to the Inland Revenue earnings cap where applicable. Only basic salary is pensionable. The scheme provides for early retirement on medical grounds and life insurance cover of four times salary.
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