BT 2001 Annual Report Download - page 114

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30. Pension costs (continued)
Certain activities of the BTPS are carried out at the company’s pension centre, all costs of which are borne by the company.
These costs have not been apportioned for accounting purposes between those attributable to the BTPS and those attributable to
the company because functions maintained for both entities cannot be meaningfully divided between them. The company occupies
nine properties owned by the scheme on which an annual rental of »3 million is payable. The BTPS assets are invested in UK
and overseas equities, UK and overseas properties, ¢xed interest and index linked securities, deposits and short-term investments.
At 31 March 2001, the UK equities included 51 million (2000 ^ 51 million) ordinary shares of the company with a market value of
»258 million (2000 ^ »597 million).
Following a High Court judgement made in October 1999, the BTPS is liable to pay additional bene¢ts to certain former
employees of the group who left on voluntary redundancy terms. These were former employees, in managerial grades, who had
joined the group’s business prior to 1 December 1971. The value of the additional bene¢ts at 31 March 2001 is estimated at
»200 million. The actuarial valuation at 31 December 1999 took into account the cost of these additional bene¢ts.
On 26 April 2001, an application for permission to appeal against the judgement was lodged on behalf of certain former
employees in non-managerial grades in an attempt to extend the additional bene¢ts to those grades. The company will be
strongly resisting this new claim if permission to appeal is given.
31. Directors
Directors’ emoluments
The emoluments of the directors for the year ended 31 March 2001 and the bene¢ts received under the long-term incentive plans
were,insummary,asfollows:
2001
£000
2000
£000
1999
£000
Salaries 2,199 1,878 1,695
Performance-related bonus 1,036 1,295 1,515
Deferred bonus in shares 531 573 1,513
Other benefits 182 148 123
3,948 3,894 4,846
Payments to non-executive directors (a) 388 302 283
Total emoluments 4,336 4,196 5,129
Gain on the exercise of share options (b) –– 932
Value of shares vested under the Executive Share Plan and the Performance Share Plan (c) (d) 782 1,845 –
(a) Payments to non-executive directors include fees paid to their principal employer of £nil (2000 – £nil, 1999 – £9,500).
(b) The amount for the year ended 31 March 1999 includes £41,000 attributable to a former director.
(c) The amount for the year ended 31 March 2000 includes £834,000 attributable to a former director.
(d) The amount for the year ended 31 March 2001 is entirely attributable to former directors.
More detailed information concerning directors’ remuneration, shareholdings, pension entitlements, share options and other
long-term incentive plans is shown in the report on directors’ remuneration from pages 66 to 71.
32. People employed
2001 2000 1999
Year end
’000
Average
’000
Year end
’000
Average
’000
Year end
’000
Average
’000
Number of employees in the group:
UK 117.9 120.3 126.0 123.8 118.9 119.8
Non-UK 19.1 13.1 10.8 8.3 5.8 5.1
Total employees 137.0 133.4 136.8 132.1 124.7 124.9
Notes to the financial statements
114 BT Annual report and Form 20-F