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BT skips bonuses, except CEO's and ex-chief's
While U.K. telco BT continues to struggle and miss financial targets, the company said BT CEO Ian Livingston, who has been with BT for about a year, will receive a bonus equal to about $550,000 for meeting environmental goals, improving customer service and delivering on other aspects of his contract terms. Meanwhile, no one else in senior management (particularly in the troubled Global Services unit) is getting bonuses and most pay raises are being skipped this year, according to multiple published reports.
Livingston reportedly is converting his bonus into BT stock shares. Meanwhile, former BT CEO Ben Verwaayen, who now leads Alcatel-Lucent, received a termination payment and bonus payment collectively worth more than three times the bonus paid to Livingston. These reports come just days after BT said it would shed 15,000 jobs. The company also said it would focus on repairing its Global Services unit in-house rather than trying to spin off the group.
For more:
- The Times Online has this story
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Comments
Posted by Reginald | June 13, 2009 - 7:30am
Seems like jobs are cut for people not involved but senior managers who cheated will sit in post and in a few years get their big bonus back. Are the Directors telling us no managers told them that their highly paid managers were giving them duff information about future prospects or were doing bad deals or didn't they want to listen? Have they gone through the names of the managers paid bonus for new wave forecasts on new proposals and actual contracts and asked them for clawback then to resign for incompetence or misleading them? Where were the auditors needed to look at reported cases like Ministry of Defence or were they given duff information too? A bad culture will continue to pervade unless stamped on.
Posted by Anonymous | May 28, 2009 - 2:42pm
A lot of BT staff had non-financial targets in their bonus plans but they were all clawed back because BT had not hit its financial targets - why is this man different?
Posted by Richard Marotte | May 27, 2009 - 2:43pm
Tell me what are the management paid for? If they deliver they get a bonus and if they do not deliver why do they get paid? Sad but the worker who does the lowest of jobs gets his bonus cut and the boss who even if he fails blames the workers and their union. Tel-Coms are far too powerful and unfair.
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