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.
The remuneration policy for members of the BBC Executive Committee, including the remuneration
package for the Director, BBC World Service and Global News, is set by the Remuneration Committee
which is a sub-committee of the Board of Governors. The remuneration of other members of the
Management Board is recommended by the Director and approved by the BBC Director-General and
the BBC Director of Human Resources and Internal Communications.
The Director assesses the performance of the Management Board members before recommending
their annual remuneration and bonus awards. BBC World Services Human Resources Director provides
technical support to the Director in this respect, but has no input into decisions affecting her own
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 salaries are reviewed in August each year, taking into account external market levels and internal
comparisons as well as the individuals responsibilities and performance. The basic salary is paid as a
fixed sum monthly in cash.
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 up to a maximum level of 30% of base
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.
In addition to salary and bonus, the main contractual benefits provided to Management Board
members are a car, private health insurance, pension and life insurance. The Director is also entitled
to a car fuel allowance.
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 appropriate. Only basic salary
is pensionable. The scheme provides for early retirement on medical grounds and life insurance cover
of four times salary.