BT 2002 Annual Report Download - page 63

Report on directors' remuneration
Remuneration Review
Directors' remuneration
Sir Christopher Bland was appointed Chairman on 1 May 2001. His annual salary is £500,000.
Ben Verwaayen joined the company on 14 January 2002 on an annual salary of £700,000 and became Chief Executive
on 1 February 2002. Under his service agreement, Ben Verwaayen is entitled to a pro rata on target bonus for the 2002
®nancial year of £122,000. This was increased by the Remuneration Committee to £152,000 to re¯ect corporate
performance.
Directors' remuneration payable in respect of their services as directors of BT (excluding pension arrangements and
deferred bonus awards) was as follows:
Salary and fees
Annual and
special bonus
Bene®ts excluding
pension
a
Total
cfj
2002
£000
2001
£000
2002
£000
2001
£000
2002
£000
2001
£000
2002
£000
2001
£000
Sir Christopher Bland 458 ±±±3±461 ±
B Verwaayen
fhk
151 ±152 ±36 ±339 ±
P Danon
fh
164 ±300 ±16 ±480 ±
A Green
fh
156 ±200 ±10 ±366 ±
Dr P Reynolds
fh
147 ±180 ±11 ±338 ±
Sir Anthony Greener 86 25 ±±±±86 25
L R Hughes 36 32 ±±±±36 32
Baroness Jay
h
7±±±±±7±
J F Nelson
h
7±±±±±7±
C Symon
h
8±±±±±8±
M van den Bergh 40 22 ±±±±40 22
H Alexander 27 35 ±±±±27 35
Dr J I W Anderson
i
29 57 ±±±±29 57
Sir Peter Bon®eld
ce
683 780 574 481 53 50 1,310 1,311
R P Brace
m
±380 ±130 ±31 ±541
B Cockburn
b
±516 ±200 ±45 ±761
P Hampton
cd
435 181 285 100 27 5747 286
N Isdell
g
96 39 ±±±±96 39
Lord Marshall 22 75 ±±±±22 75
J F de Moller 27 35 ±±±±27 35
J K Oates ±30 ±±±±±30
Sir Iain Vallance
al
29 342 ±125 451 33 518
Sir John Weston 29 38 ±±±±29 38
2,637 2,587 1,691 1,036 160 182 4,488 3,805
a
Includes other bene®ts as described above. Sir Iain Vallance had use of a car in Scotland.
b
On the terms of his leaving the company on 31 March 2001, Bill Cockburn was entitled to salary and bene®ts for one year. In the 2002 ®nancial year, he
received a salary of £520,000 and bene®ts of £113,000.
c
In addition, deferred bonuses, payable in shares in three years' time, were awarded in 2001 to Sir Peter Bon®eld £481,000; Philip Hampton £50,000. When added
to the amounts paid for the 2001 ®nancial year, in the table above, the total remuneration of Sir Peter Bon®eld was £1,792,000 and Philip Hampton £336,000.
d
On the terms of his leaving the company on 30 April 2002, a termination payment of £217,500 was made to Philip Hampton, equivalent to the balance of the
initial period of his service agreement together with a sum of £9,000 in respect of bene®ts for that period. The estimated cost of providing Philip Hampton with
the level of pension bene®ts to which he would have been entitled had he remained in pensionable service until 31 October 2002 was £87,000.
e
On the terms of his leaving the company on 31 January 2002, Sir Peter Bon®eld will receive the sum of £820,000 payable in 12 monthly instalments of which
£137,000 was received in the 2002 ®nancial year. He will also receive bene®ts for one year of which £25,000 was received in the 2002 ®nancial year. Sir Peter
also received a payment equivalent to his annual on-target bonus of £615,000. The estimated cost of providing Sir Peter with one additional year of pension
service is £512,000.
f
The bonuses of Pierre Danon, Andy Green and Paul Reynolds relate to the whole year and have not been apportioned between their Executive Committee
and Board roles. In addition, deferred bonuses payable in shares in three years' time, were awarded to Ben Verwaayen £152,000, Pierre Danon £150,000,
Andy Green £100,000 and Paul Reynolds £90,000. When added to the amounts paid or payable for the 2002 ®nancial year, in the table above, the total
remuneration of Ben Verwaayen was £491,000; Pierre Danon £630,000; Andy Green £466,000 and Paul Reynolds £428,000.
g
This includes fees of £64,000 received by Neville Isdell in the 2002 ®nancial year as Chairman designate of Yell.
h
None of these directors was previously a director of British Telecommunications plc.
i
Dr Anderson receives fees of £12,000 per annum as Chairman of the BT Scotland Board. From the date of his retirement from the BT Board until 31 March
2002, he received fees of £6,000.
j
Included in this total and in note f is the remuneration received by, or payable to, directors of BT Group plc for their services since the completion of the BT
restructuring on 19 November 2001. The aggregate emoluments of the directors amounted to £3,018,000. The aggregate amount paid to directors as
deferred bonuses payable in shares was £492,000. The aggregate of contributions paid under de®ned contribution arrangements was £3,975. Retirement
bene®ts are accruing to two directors under de®ned contribution arrangements and to four directors under a de®ned bene®t scheme. The emoluments for the
highest paid director for the period amounted to £749,000.
k
Ben Verwaayen is entitled to relocation expenses of up to £200,000. No payments were made by the company in this regard during the 2002 ®nancial year.
He is also entitled to a housing allowance of £250,000 per annum for three years of which £36,000 was received in the 2002 ®nancial year and this is included
in the table above.
l
Sir Iain Vallance, following his retirement from the Board, will receive fees as President Emeritus of £350,000 per annum until 31 July 2002. He received
£321,000 for the 2002 ®nancial year. He will also receive bene®ts for one year of which £38,000 was received in the 2002 ®nancial year. He is entitled to a
bonus of £600,000 if his contract is still in force on 31 July 2002.
m
Robert Brace received a payment of £4,000 in lieu of bene®ts for the 2002 ®nancial year.
62 BT Group Annual Report and Form 20-F 2002