BT 2000 Annual Report Download - page 52

Annual report and Form 20-F 51
committee they chair. The Deputy Chairman is paid an
inclusive annual fee of »75,000 (1999 ^ »75,000).
To align further the interests of the non-executive
directors with those of shareholders, the company's policy is
to encourage these directors to purchase, on a voluntary
basis, »5,000 of BT shares each year. The directors are asked
to hold those shares until they retire from the Board.
Remuneration review
Directors' remuneration
Sir Iain Vallance has been part-time Chairman since
1 August 1998. His annual salary was increased to
»325,000 on 1 August 1999 (from »275,000). From 1 April
1999, 12 months after their previous increase, Sir Peter
Bon¢eld's salary was increased from »617,500 to »725,000
and Robert Brace's salary increased from »330,000 to
»355,000. Bill Cockburn's salary was increased from 1 June
1999 to »495,000 (previously »465,000).
From 1 April 2000, Sir Peter Bon¢eld's salary was
increased to »780,000 a year and Robert Brace's to
»380,000. Bill Cockburn's salary will be increased to
»520,000 from June 2000. The salary of Sir Iain Vallance
will be increased to »350,000 from 1 August 2000 for a
period of two years.
Sir Peter Bon¢eld's annual bonus award in respect of
the 2000 ¢nancial year is based wholly on the achievement
of group-wide objectives and results measured against the
overall BT Corporate Scorecard. His ``on target'' bonus for
the 2000 ¢nancial year was 65% of salary, subject to a
maximum of 100% of salary.
For Robert Brace, Bill Cockburn and other members of
the Group Executive Committee, annual bonus awards are
based on the achievement of a mix of group, divisional and
personal objectives.
Robert Brace's ``on target'' bonus for the 2000 ¢nancial
year was 40% of salary, subject to a maximum of 60% and
Bill Cockburn's bonus for ``on target'' was 50% of salary,
subject to a maximum of 75%.
Annual bonus awards to executive directors for the
year under review ranged from 41% to 69% of salary.
In recognition of his contribution to the global venture
with AT&T and its completion in January 2000, Sir Iain
Vallance received a special bonus of »250,000. He
participated again in the bonus scheme for the 2000
¢nancial year and was awarded a bonus of »150,000.
Sir Iain will be granted a terminal bonus of »600,000 on
the expiry of his contract. Sir Iain does not participate in
the long-term incentive plans.
Directors' remuneration (excluding pension arrangements and deferred bonuses) of the directors was as follows:
Salary and fees
Annual and
special bonuses
Benefits excluding
pension(a) Total(c)
2000
£000
1999
£000
2000
£000
1999
£000
2000
£000
1999
£000
2000
£000
1999
£000
Sir lain Vallance 308 349 400 300 38 45 746 694
Sir Peter Bon®eld 725 617 500 725 53 37 1,278 1,379
R P Brace 355 329 145 210 24 26 524 565
B Cockburn 490 400 250 280 33 15 773 695
Lord Marshall 75 75 ±±±±75 75
H Alexander 35 24 ±±±±35 24
J I W Anderson 54 46(b) ±±±±54 46
L R Hughes 8±±±±±8±
N Isdell 32 22 ±±±±32 22
J F de Moller 20 ±±±±±20 ±
J K Oates 40 36 ±±±±40 36
Sir John Weston 38 16 ±±±±38 16
M Argent ±30 ±±±1±31
Sir Ewen Fergusson ±33 ±±±±±33
2,180 1,977 1,295 1,515 148 124 3,623 3,616
(a) Includes other bene®ts as described above. In addition to his company car, Sir Iain Vallance has use of a car in Scotland.
(b) Payments to non-executive directors include fees paid to their principal employer of £nil (1999 ± £9,500).
(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
Bon®eld ± £500,000 (1999 ± £1,150,000), Robert Brace ± £72,500 (1999 ± £82,500) and Bill Cockburn ± £nil (1999 ± £280,000).
When added to the amounts paid or currently payable for the 2000 ®nancial year, in the table above, the total remuneration of Sir Peter Bon®eld was
£1,778,000 (1999 ± £2,529,000), Robert Brace £596,500 (1999 ± £647,500) and Bill Cockburn £773,000 (1999 ± £975,000).