BT 2002 Annual Report Download - page 70

Report on directors' remuneration
Operating Committee
The aggregate remuneration of members of the Operating Committee (OC) and the former Executive Committee, other
than directors, for services in all capacities during the 2002 ®nancial year was as follows:
2002
£000
2001
£000
Salaries and bene®ts 3,703 3,699
Annual bonuses 1,551 1,599
Termination and retention payments 1,276 97
Provision for long-term incentive awards 4,959 5,693
Company pension contributions 857 936
Total 12,346 12,024
The Operating Committee replaced the Executive Committee in February 2002.
Paul Reynolds, Andy Green and Pierre Danon, who were members of the Executive Committee, were appointed to the
Board on 19 November 2001 and from that date their directors' salaries and their annual bonuses are re¯ected in the table
on page 62.
Options over 5,650 shares under the BT Group Employee Sharesave Scheme were granted to an OC member during
the 2002 ®nancial year.
The members of the OC bene®cially own less than 1% of the company's outstanding ordinary shares.
Directors' service agreements and contracts of appointment
The dates on which the Chairman's and each current executive director's initial service agreement commenced and the
current expiry dates are as follows:
Chairman and executive directors
Commencement date of
initial service agreement
Expiry date of
current service agreement
Sir Christopher Bland 1 May 2001
a
B Verwaayen 14 January 2002
b
I Livingston 8 April 2002
c
P Danon 19 November 2001
d
A Green 19 November 2001
d
Dr P Reynolds 19 November 2001
d
a
Sir Christopher Bland entered into a new service agreement on 19 November 2001, terminable on 12 months' notice by either the company or the director.
b
The agreement is terminable during the ®rst year by the company giving two years' notice and thereafter, by notice of not less than one year; terminable by the
director on six months' notice ending after the ®rst two years.
c
Ian Livingston entered into an initial service agreement on 8 April 2002 for two years. The contract is terminable on 12 months' notice by the company and six
months' notice by the director ending at any time after the initial period.
d
The initial agreement is for one year and is terminable by the company on 12 months' notice and by the director on six months' notice ending after the initial
period.
The dates on which current non-executive directors' contracts of appointment commenced and the current expiry dates
are as follows:
Non-executive director Commencement date of initial contract Expiry date of current contract
Sir Anthony Greener 1 October 2000 30 September 2003
a
L R Hughes 1 January 2000 31 December 2002
a
Baroness Jay 14 January 2002
b
J F Nelson 14 January 2002
b
C Symon 14 January 2002
b
M van den Bergh 1 September 2000 31 August 2003
a
a
Each director's contract of appointment was with British Telecommunications plc for an initial period of three years. On 19 November 2001 each director
entered into a new contract with BT Group plc for the remainder of that period. The contract is terminable after that period by the company or the director on
12 months' notice.
b
Each director's contract is for an initial period of three years and is terminable by the company or the director on three months' notice. The contract is
renewable by mutual agreement.
There are no other service agreements or material contracts, existing or proposed, between the company and the directors.
There are no arrangements or understandings between any director or executive of®cer and any other person pursuant to
which any director or executive of®cer was selected to serve. There are no family relationships between the directors.
By order of the Board
Sir Anthony Greener
Deputy Chairman and Chairman of Remuneration
Committee
21 May 2002
BT Group Annual Report and Form 20-F 2002 69