BT 1999 Annual Report Download - page 51

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REPORT ON DIRECTORS’ REMUNERATION
The remuneration (excluding pension arrangements and deferred bonuses) of the directors was as follows:
Annual and Benefits
Salary and fees special bonuses excluding pension (a) Total (c)
)))%!!!))!!!!!!00111!!!00111!!!00111!!!00111
1999 1998 1999 1998 1999 1998 1999 1998
£000 £000 £000 £000 £000 £000 £000 £000
)))%!!!))!!!!!!00111!!!00111!!!00111!!!00111
Sir Iain Vallance 349 500 300 325 45 37 694 862
Sir Peter Bonfield 617 570 725 325 37 43 1,379 938
R P Brace 329 300 210 162 26 23 565 485
B Cockburn 400 –280 –15 –695 –
Lord Marshall 75 65 ––––75 65
H Alexander 24 –––––24 –
J I W Anderson 46(b) 38(b) ––––46 38
Sir Ewen Fergusson 33 38 ––––33 38
N Isdell 22 –––––22 –
J K Oates 36 35 ––––36 35
Sir John Weston 16 –––––16 –
M Argent 30 52 ––1131 53
A W Rudge –208 –70 –11 –289
Non-executive directors
who retired in previous year –30 –––––30
00050051!!!00111!!!00111!!!00111!!!00111
1,977 1,836 1,515 882 124 115 3,616 2,833
00050051!!!00111!!!00111!!!00111!!!00111
(a) Includes other benefits as described above. In addition to
his company car, Sir lain Vallance has use of a car in Scotland.
(b) Payments to non-executive directors include fees paid to
their principal employer of £9,500 (1998 – £38,000).
(c) In addition, deferred bonuses payable in shares in three
years time, provided they are still employed by the company,
were awarded to Sir Peter Bonfield – £1,150,000 (1998 –
£163,000), Robert Brace – £82,500 (1998 – £59,000) and
Bill Cockburn – £280,000.
When added to the amounts paid or currently payable for the
1999 financial year, in the table above, the total remuneration of
Sir Peter Bonfield was £2,529,000 (1998 – £1,101,000), Robert
Brace £647,500 (1998 – £544,000) and Bill Cockburn £975,000.
The directors’ long-term remuneration benefits, through the
exercise of share options, were as follows:
1999 1998
£000 £000
))))%!!!!!!0051111
Sir Iain Vallance –415
R P Brace 891 –
A W Rudge 41 442
00005111!!!0051111
The figures in the above table are based on the amount by
which the market value of the shares on the date of exercise
exceeded the option price. The figures include the employee
compensation for the special dividend (see note 4 to the
financial statements).
Bill Cockburn was appointed a director on 1 April 1998, Helen Alexander on 1 June 1998, Neville lsdell on 1 July 1998 and
Sir John Weston on 1 October 1998. Malcolm Argent retired on 31 December 1998 and Sir Ewen Fergusson on 31 March 1999.
In the previous year, Yve Newbold retired on 30 June 1997, Dr Alan Rudge on 31 October 1997, Gerald Taylor on 9 November
1997, Bert Roberts on 17 March 1998 and Birgit Breuel on 31 March 1998. Yve Newbold remains on the Community Support
Committee for which she received fees of £5,000 in the year ended 31 March 1999 (1998 – £3,750) after her retirement as
a director.
Bill Cockburn’s bonus arrangements provide for an “on
target” bonus of 50% of salary, subject to a maximum of 75%.
Annual bonus awards for executive directors for the year
under review ranged from 50% to 88% of salary.
The Remuneration Committee noted the particular
contribution of Sir Peter Bonfield to the significant success
of the company in the 1999 financial year, likewise in
respect of Bill Cockburn for the performance of the UK
business. It also wished to improve the retention incentives.
For the 1999 financial year, the Committee has increased
the deferred bonuses which are held in the DBP and paid
in shares in three years time if they are still employed by
the company to twice the annual bonus for Sir Peter and to
the amount of his annual bonus for Bill Cockburn.
In recognition of his contribution to the success of the
company throughout the 1999 financial year, Sir Iain
Vallance received a bonus of £300,000.