BT 2011 Annual Report Download - page 81

78
The annual cash bonus awards for 2011 are not pensionable. Ian
Livingston’s bonus of £1,415,250 represented 157.25% of his
current salary (2010: 142%), Tony Chanmugam’s bonus of
£604,350 represented 118.5% of his current salary (2010: 97%)
and Gavin Patterson’s bonus of £645,750 represented 123% of his
current salary (2010: 97%).
Following this year’s review of annual salaries, Ian Livingston’s
salary will be increased to £925,000 (2.8%), Tony Chanmugam’s
salary will be increased to £535,000 (4.9%) and Gavin Patterson’s
salary will be increased to £570,000 (8.6%). All increases will be
effective from 1 June 2011.
Salary increases for direct reports to the Chief Executive (including
the executive directors) were consistent with the salary increases
for employees throughout the company.
Sir Michael Rake’s salary was increased from £600,000 to £650,000
with effect from 1 January 2011, the first increase since his
appointment as Chairman in September 2007. His salary will be
reviewed again in January 2012. This increase is consistent with
salary increases for employees over the same period.
Former directors
Sir Peter Bonfield received under pre-existing arrangements, a
pension of £403,745 in 2011 (2010 £394,283).
Baroness Jay retired as a non-executive director on 13 January
2008 but continues as a member of the
Committee for Sustainable
& Responsible Business
for which she receives an annual fee of
£6,500.
Deborah Lathen retired as a director on 31 January 2010 and she
received an annual fee of US$70,000 (£42,000) as a consultant to
BT.
Hanif Lalani, who resigned as a director on 7 January 2010, will
receive a deferred pension under the BTPS on his 60th birthday.
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.
Increases in pension benefits at 31 March 2011 Transfer
value of
increase
Change in accrued
in transfer Additional benefits in
value c-d accrued benefits e less
less director’s earned in director’s
Accrued pension Transfer value of accrued benefits contributions the year contributions
2011 2010 2011 2010 2011 2011 2011
£000a£000b£000c£000d£000 £000e£000f
T Chanmugamg191 180 4,197 3,536 661 3 51
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 he would have been entitled had he left the company on 31 March 2011 and 2010, respectively.
cTransfer value of the deferred pension in column (a) as at 31 March 2011 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 2010 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.
gTony Chanmugam’s contributions in the financial year 2011 were £nil (2010: £nil).
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 £234,750 into his personal pension plan, plus a cash payment
of £32,250 representing the balance of the pension allowance for
the 2011 financial year. BT also provides him with a death in service
lump sum 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 £151,250 was made for him for the
2011 financial year. BT also provides him with a death in service
lump sum benefit of four times his salary.
Gavin Patterson receives an annual allowance equal to 30% of
salary towards pension provision. Of this amount, £52,080 was
paid as an employer contribution into the BTRSS and the balance of
£104,160 was paid as a cash payment for the 2011 financial year.
BT also provides him with a death in service lump sum benefit of
four times his salary plus a widow’s pension of 30% of his capped
salary.
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.
REPORT OF THE DIRECTORS REPORT ON DIRECTORS’ REMUNERATION
OVERVIEWBUSINESS REVIEWFINANCIAL REVIEWREPORT OF THE DIRECTORSFINANCIAL STATEMENTSADDITIONAL INFORMATION