BT 2001 Annual Report Download - page 66

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Report on directors’ remuneration
66 BT Annual report and Form 20-F
Directors’ remuneration (excluding pension arrangements and deferred bonuses) was as follows:
Salary and fees
Annual and
special bonus
Benefits excluding
pension(a) Total(e)
2001
£000
2000
£000
2001
£000
2000
£000
2001
£000
2000
£000
2001
£000
2000
£000
Sir lain Vallance 342 308 125 400 51 38 518 746
Sir Peter Bonfield 780 725 481 500 50 53 1,311 1,278
P R Hampton(b) 181 –100 –5–286 –
R P Brace(c) 380 355 130 145 31 24 541 524
B Cockburn(d) 516 490 200 250 45 33 761 773
Lord Marshall 75 75 ––––75 75
Sir Anthony Greener 25 –––––25 –
H Alexander 35 35 ––––35 35
J I W Anderson 57 54 ––––57 54
L R Hughes 32 8––––32 8
N Isdell 39 32 ––––39 32
J F de Moller 35 20 ––––35 20
J K Oates 30 40 ––––30 40
M van den Bergh 22 –––––22 –
Sir John Weston 38 38 ––––38 38
2,587 2,180 1,036 1,295 182 148 3,805 3,623
(a) Includes other benefits as described above. Sir Iain Vallance had use of a car in Scotland.
(b) Philip Hampton joined the company on 1 November 2000.
(c) On the terms of his leaving the company on 31 December 2000, Robert Brace continued to receive his salary and contractual benefits until the earlier of twelve
months or until he obtained full-time employment. On 31 March 2001, these payments were discontinued when he was appointed to a new position. Between
31 December 2000 and 31 March 2001, salary of £95,000 was paid to Robert Brace, together with benefits to the value of £5,000. In addition, Robert Brace
was paid a sum of £200,000, which was the estimated cost of providing the pension benefits that would have accrued over his notice period.
(d) On the terms of his leaving the company on 31 March 2001, Bill Cockburn will continue to receive his salary and value of his contractual benefits until the earlier
of twelve months or until he obtains full-time employment.
(e) In addition deferred bonuses, payable in shares in three years’ time, were awarded to Sir Peter Bonfield £481,000 (2000 – £500,000); Philip Hampton £50,000.
When added to the amounts paid or currently payable for the 2001 financial year, in the table above, the total remuneration of Sir Peter Bonfield was
£1,792,000 (2000 – £1,778,000) and Philip Hampton £336,000.
Bill Cockburn’s salary was increased from »495,000 to »520,000
with e¡ect from 1 June 2000 until his retirement on 31 March 2001.
Philip Hampton joined the Board on 1 November 2000, on a salary
of »435,000 per annum.
For Philip Hampton, Bill Cockburn and members of the EC,
annual bonus awards are based on the achievement of a mix of
group, divisional and personal objectives.
Philip Hampton’s and Bill Cockburn’s on-target bonuses for
the 2001 ¢nancial year were 50% of salary, subject to a maximum
of 75%, with Philip Hampton’s being guaranteed at a minimum of
»100,000 exceptionally in 2001 as part of the recruitment package.
Annual bonus awards to executive directors for the 2001
¢nancial year ranged from 35% to 62% of salary.
Sir Iain Vallance’s salary was increased from »325,000 to
»350,000 from 1 August 2000. Sir Iain’s bonus for the 2001
¢nancial year was »125,000.
On 1 August 2000, awards of 41,552 shares and 48,480 shares
under the ESP vested in former directors, Robert Brace and Sir
Alan Rudge, respectively. The value of these awards of shares on
the vesting date was »361,086 for Robert Brace and »421,291 for
Sir Alan Rudge. Sir Alan Rudge retired as a director on 31 October
1997.
Board changes
Robert Brace and Keith Oates left the BT Board on
31 December 2000. Bill Cockburn left the Board on 31 March 2001.
Maarten van den Bergh was appointed to the Board on
1 September 2000. Sir Anthony Greener was appointed a non-
executive director on 1 October 2000. Philip Hampton was
appointed to the Board as Group Finance Director and a member
of the Board on 1 November 2000. Sir Iain Vallance retired as
Chairman and left the Board on 1 May 2001. Following his
retirement from the Board, Sir Iain has been appointed President
Emeritus. Sir Christopher Bland joined the Board as Chairman on
1 May 2001. Yve Newbold, who retired in June 1997, remains on
the Community Support Committee, for which she received fees of
»5,000 in the 2001 ¢nancial year (2000 ^ »5,000).
Termination payments
Sir Peter Bon¢eld’s contract entitles him to 12 months’
compensation on termination by BT. His contract will terminate