BT 2010 Annual Report Download - page 76

74 BT GROUP PLC ANNUAL REPORT & FORM 20-F
REPORT OF THE DIRECTORS REPORT ON DIRECTORS’ REMUNERATION
The directors’ salaries were not increased in 2009/10.
The annual cash bonus awards for 2009/10 are not pensionable.
Ian Livingston’s bonus of £1,206,000 represented 142% of his
current salary (2008/09: 40%), Tony Chanmugam’s bonus of
£462,650 represented 97% of his current salary (2008/09: 22%)
Gavin Patterson’s bonus of £487,000 represented 97% of his
current salary (2008/09: 32%) and Hanif Lalani’s bonus of
£503,290 represented 86% of his salary (2008/09: 0%).
Following this year’s review of annual salaries, Ian Livingston’s
salary will be increased to £900,000, Tony Chanmugam’s salary will
be increased to £510,000 and Gavin Patterson’s salary will be
increased to £525,000. All increases will be effective from 1 June
2010.
Former directors
Sir Peter Bonfield received, under pre-existing arrangements, a
pension of £394,283 payable in the 2009/10 financial year
(2008/09 – £390,766).
Baroness Jay retired as a non-executive director on 13 January
2008 but continues as a member of the
Committee for Responsible
and Sustainable Business
, for which she receives an annual fee of
£6,500.
Deborah Lathen retired as a director on 31 January 2010 and has
been appointed as a consultant to BT for which she receives an
annual fee of US$70,000 (£44,000).
Loans
There are no outstanding loans granted by any member of the BT
Group to any of the directors, or guarantees provided by any
member of the BT Group for their benefit.
Pensions
Sir Michael Rake is not a member of any of the company pension
schemes, and the company made no payments towards retirement
provision. BT provides him with a lump sum death in service benefit
of £1m.
Ian Livingston is not a member of any of the company pension
schemes, but the company has agreed to pay an annual amount
equal to 30% of his salary towards pension provision. The company
paid £245,000 into his personal pension plan, plus a cash payment
of £10,000 representing the balance of the pension allowance for
the 2009/10 financial year. BT also provides him with a lump sum
death in service benefit of four times his salary.
Tony Chanmugam is a member of the BTPS but has opted out of
future pensionable service accrual. The company pays him an
annual allowance equal to 30% of salary towards pension
provision. A cash payment of £142,500 was made for Tony
Chanmugam for the 2009/10 financial year. BT also provides him
with a death in service lump sum benefit of four times salary.
Gavin Patterson receives an annual allowance equal to 30% of
salary towards pension provision. Of this amount, £50,000 was
paid as an employer contribution into the BTRSS and the balance of
£100,000 was paid as a cash payment for the 2009/10 financial
year. BT also provides him with a death in service lump sum benefit
of four times salary plus a widow’s pension of 30% of his capped
salary.
Hanif Lalani is a member of the BTPS but opted out of future
pensionable service accrual. The company paid an annual
allowance equal to 30% of salary towards pension provision. A cash
payment of £175,500 was paid to Hanif Lalani for the 2009/10
financial year. BT also provided a death in service lump sum benefit
of four times salary and a two-thirds widow’s pension.
The table below shows the increase in the accrued benefits,
including those referred to above, to which each director who is a
member of the BTPS has become entitled during the year, and the
transfer value of the increase in accrued benefits.
Increases in pension benefits at 31 March 2010 Transfer
value of
increase
Change in accrued
in transfer Additional benefits in
value c-d accrued benefits e less
less directors’ earned in directors’
Accrued pension Transfer value of accrued benefits contributions the year contributions
2010 2009 2010 2009 2010 2010 2010
£000a£000b£000c£000d£000 £000e£000f
T Chanmugamg,h 180 140 3,536 2,419 1,117 35 693
H Lalanig,i 166 161 2,382 1,742 640 – –
a-d As required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
a-b The values represent the deferred pension to which they would have been entitled had they left the company on 31 March 2010 and 2009, respectively.
cTransfer value of the deferred pension in column (a) as at 31 March 2010 calculated on the basis of actuarial advice in accordance with relevant legislation. The transfer value represents a liability of the BTPS
rather than any remuneration due to the individual, and cannot be meaningfully aggregated with annual remuneration, as it is not money the individual is entitled to receive.
dThe equivalent transfer value but calculated as at 31 March 2009 on the assumption that the director left the company on that date.
eThe increase in pension built up during the year, net of inflation. The gross amount can be calculated by deducting the amount under column (b) from the amount under column (a).
fThe transfer value of the pension in column (e), less directors’ contributions.
gDirectors’ contributions in the financial year 2009/10 were as follows: Hanif Lalani £nil (2009: £nil); Tony Chanmugam, £nil (2009: £9,500).
hTony Chanmugam was appointed as a director on 1 December 2008.
iHanif Lalani resigned as a director on 7 January 2010 and left the company on 31 March 2010.