BT 2004 Annual Report Download - page 66

Remuneration Review – this part of the Report on directors’ remuneration is subject to audit
Directors’ remuneration
Directors’ remuneration for the 2004 financial year was as follows:
Basic
salary and
fees
Pension
allowance net
of pension
contributions
a
Total salary
and fees
Annual
bonus
Expenses
allowance
Other
benefits
excluding
pension
d
Total
2004
Total
2003
£000 £000 £000 £000 £000 £000 £000 £000
Sir Christopher Bland 500 – 500 – – 32 532 512
B Verwaayen
ce
700 110 810 859 250 49 1,968 2,174
P Danon
be
450 – 450 259 19 22 750 829
A Green
e
425 – 425 336 – 30 791 761
I Livingston
bef
450 115 565 325 19 4 913 1,116
Dr P Reynolds
be
400 – 400 295 19 23 737 732
Sir Anthony Greener 96 – 96–––96 90
M van den Bergh 44 – 44–––
44 40
C Brendish
g
39 – 39–––39 20
LRHughes 40 – 40–––
40 37
Baroness Jay 39 – 39–––
39 35
J Nelson 39 – 39–––
39 35
CGSymon 40 – 40–––
40 37
3,262 225 3,487 2,074 307 160 6,028 6,418
a
Balance or part of the pension allowance for the 2004 financial year – see ‘‘Pensions’’ on pages 65 to 66.
b
Pierre Danon, Ian Livingston and Paul Reynolds each received a monthly cash allowance in lieu of a company car totalling £18,500 per annum.
c
Ben Verwaayen is entitled to a housing allowance of £250,000 per annum until 13 January 2005. In the 2004 financial year, £250,000 was paid in
respect of that year (2003 – £250,000). These amounts are included in the table above under Expenses allowance.
d
Includes some or all of the following: company car, fuel and driver, personal telecommunications facilities and home security, medical and dental cover for
the director and immediate family, professional subscriptions and personal tax and financial counselling.
e
Deferred bonuses payable in shares in three years’ time, were awarded to Ben Verwaayen £429,500 (2003 – £849,000), Pierre Danon £129,500 (2003 –
£169,000), Andy Green £168,000 (2003 – £153,000), Ian Livingston £162,500 (2003 – £169,000) and Paul Reynolds £147,500 (2003 – £144,000).
When added to the amounts paid or payable for the 2004 financial year, in the table above, the total remuneration of Ben Verwaayen was £2,397,500
(2003 – £3,023,000); Pierre Danon £879,500 (2003 – £998,000), Andy Green £959,000 (2003 – £914,000); Ian Livingston £1,075,500 (2003 –
£1,285,000) and Paul Reynolds £884,500 (2003 – £876,000).
f
Ian Livingston joined the Board on 8 April 2002.
g
Clayton Brendish joined the Board on 1 September 2002.
h
Retirement benefits are accruing to three directors (2003 – three) under defined contribution arrangements and to three directors (2003 – three) under a
defined benefit scheme.
The salaries of the Chairman and executive directors
remained unchanged during the 2003 and 2004
financial years and, following this year’s salary review,
the Committee decided there should be no increase
from 1 June 2004 in basic salaries.
Sir Christopher Bland was appointed as part-time
Chairman on 1 May 2001. His annual salary on
appointment was £500,000.
Ben Verwaayen joined the company on 14 January
2002 on an annual salary of £700,000. He became
Chief Executive on 1 February 2002.
Pierre Danon, Andy Green and Paul Reynolds
joined the Board on 19 November 2001 on salaries of
£450,000, £425,000 and £400,000, respectively.
Ian Livingston joined the Board on 8 April 2002 on
a salary of £450,000.
Annual bonus awards to executive directors ranged
from 58% to 123% of salary in the 2004 financial year
(2003: 72% to 121%). These payments are not
pensionable.
Former directors
Yve Newbold remains a member of the Community
Support Committee for which she received fees of
£5,000 in the 2004 financial year. She also received
fees of £4,000 as a member of BT’s Social Policy
Leadership Panel.
Dr Iain Anderson received fees of £12,000 in the 2004
financial year as chairman of the BT Scotland Board.
He will retire in June 2004.
Sir Peter Bonfield received, under pre-existing
arrangements, a pension of £331,000 payable by the
company in the 2004 financial year (2003 – £322,000).
Loans
Prior to the date of their appointment to the Board on
19 November 2001, Pierre Danon and Paul Reynolds
each had interest-free loans from the company to
assist with relocation of £375,000 and £300,000,
respectively. At 31 March 2004, Pierre Danon owed
£243,750 (2003 – £281,250) and Paul Reynolds owed
£260,000 (2003 – £290,000). During the 2004
financial year, the maximum amount outstanding was
£571,250. There are no outstanding loans granted by
any member of the BT group to any other of the
directors or guarantees provided by any member of the
BT group for their benefit.
Pensions
Sir Christopher Bland is not a member of any of the
company pension schemes, but the company matches
his contributions, up to 10% of the earnings cap, to a
personal pension plan. Company contributions of
£9,900 were payable in respect of the 2004 financial
year. The earnings cap is a restriction on the amount
BT Annual Report and Form 20-F 200465 Report on directors’ remuneration