BBC to cut senior managers' pay and axe jobs

by Arif Durrani, mediaweek.co.uk 29-Oct-09, 15:10

LONDON - The BBC is to slash the amount it pays senior managers by 25% over the next three and a half years and reduce headcount by 18% in an attempt to ensure "maximum value for the licence fee payer", it was revealed today (29 October).

The BBC Trust has agreed to the proposals after challenging the BBC executive to review its approach to remuneration in relation to the wider economic climate.

Other cost-saving initiatives to be enforced include a new pay strategy for senior managers joining the BBC and pay freezes for the executive board directors for the next three years.

The BBC has also confirmed the "indefinite suspension of bonuses" for all its executive directors and members of the BBC Direction Group.

Alongside these measures, the new remuneration policy sets out a clear and explicit discount against the private sector when setting senior manager pay; to review of all senior manager posts when they become vacant; and to pursue a strategy for growing talent within the BBC to the senior management ranks in a bid to stem external hires.

BBC Trust chairman, Sir Michael Lyons, called the proposals put forward by director-general Mark Thompson "comprehensive" and said they "strike the right balance between ensuring the BBC can attract the best people to do the job, while ensuring maximum value for the licence fee payer".

However, today's plans have already drawn criticism from the Conservatives, with shadow culture secretary Jeremy Hunt claiming the BBC has "missed an opportunity to prove it is in tune with the public mood over high salaries".

He added: "Public anger was focused not just on the management itself, but on the salaries paid to senior executives. The BBC needs to be careful that it doesn't lose the public's trust by being out of step on such an important issue."

The comments promise to ratchet up the tension between the BBC and the Conservative Party, which has already indicated it plans to cap pay for all BBC executives at £192,250 - the same level as the Prime Minister - if they come into power after the next election.

Thompson currently receives £834,000 a year salary and claims the BBC has established it is already achieving a "significant discount" when compared to its broadcast rivals.

Earlier this year, the BBC was also forced to defend itself against claims its executives were claiming too much in expenses.

Thompson also came under fire in August for refusing Conservative calls to reveal the salaries of its on-screen talent as well.