BT acts on excessive CEO pay following massive revolt

BT is to overhaul the way it sets executive pay after the telecoms giant suffered a revolt over outgoing boss Gavin Patterson's bumper £2.3 million remuneration.
BT boss Gavin PattersonBT boss Gavin Patterson
BT boss Gavin Patterson

The firm said that, following a rebellion in which 34% of investors rejected its remuneration report in July, it spent time engaging with shareholders.

As a result, BT’s remuneration committee will now take steps to implement a “more structured process” that will take into consideration a “broader range of performance factors and wider circumstances” when setting pay.

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During the conversations, investor concern centred on the level of annual bonus paid to Mr Patterson, BT added.

Mr Patterson’s £2.3m pay packet represented a £1m hike in his annual pay and included a £1.3m annual bonus, a £997,000 basic salary and £299,000 in pension payments.

It was announced in May, just weeks after BT swung the axe on 13,000 jobs.

BT said: “Some shareholders felt that the amount paid did not appropriately reflect the underlying performance of the company or take adequate account of the value created for shareholders.

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“Concerns were also expressed about the timing of the decision to pay this level of bonus given the announcement on 8 June 2018 that Gavin Patterson was stepping down as chief executive.”

The AGM result saw BT placed on a public register of firms in which more than 20% of shareholders have revolted over a resolution.