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The BBC faced a backlash today as it emerged that its two top bosses enjoyed a pay increase last year — while introducing a range of cost-cutting measures across the corporation.
Director-general Mark Thompson and BBC Trust chairman Sir Michael Lyons saw their earnings go up, the BBC's annual report revealed today.
Mr Thompson's total remuneration rose to £834,000 from £816,000 the year before thanks to a £164,000 payment into his pension. Sir Michael, who today announced that bonuses for the corporation's top rank had been waived indefinitely, took £213,000 — up £50,000 on the year before. His taxable benefits doubled from £35,000 to £70,000 in the 30 per cent rise.
This year the BBC saved £237 million in “efficiencies”, mainly redundancies and pay cuts. A further £400 million will be saved in another round of job cuts as it aims to save £1.9 billion.
Many top BBC stars, including Jonathan Ross, Bruce Forsyth and Graham Norton, face or have agreed to a significant reduction in their salaries.
The BBC today defended the pay increases. It said Mr Thompson's rise was because he did not take a bonus for five years. A spokeswoman said: “At two per cent, the director-general's increase is below inflation.”
The BBC Trust said the increase on Sir Michael's total package was because he was working more hours each week. Total pay for the executive board fell by 7.2 per cent in the year to March, and Mr Thompson and Sir Michael were the only executives to get a rise.
Sir Michael took the opportunity of today's annual report to hit back at criticism from the new culture secretary, Ben Bradshaw, over sharing the licence fee with rival broadcasters.
Mr Bradshaw today called on BBC bosses to “show some leadership” on the issue, rather than “feel that the bunker is the place that they want to be”.
Sir Michael responded: “It is indeed surprising for the secretary of state who has just started a public consultation exercise to give the impression he has already made his mind up so firmly.
“There is room for differences of opinion here. This is a debate we take a different view on. We all don't have to have the same view and we don't have to defend personal criticism.”
Downing Street distanced itself from Mr Bradshaw's attack. Gordon Brown's spokesman declined to say whether the Prime Minister shared his culture secretary's opinions. He said: “Ben Bradshaw is clear that he views the BBC as a unique and high-quality broadcaster. He is a champion of the BBC and is fully committed to its future.”
Labour MP John Grogan, chairman of the all-party parliamentary BBC group was stunned by Mr Bradshaw's onslaught. He said: “This is the sort of attack on the major public service broadcaster which you would normally associate with a banana republic.”
Ministers proposed in the Digital Britain white paper last month that 3.5 per cent of the licence fee, about £130 million, should be used for regional news broadcasts on ITV and possibly also children's programmes.
BBC Worldwide, the broadcaster's commercial arm, has seen its profits plummet to £85.7 million — a 27 per cent drop on the previous year.
Reader views (13)
I,VE SAID IT BEFORE I'LL SAY IT AGAIN ,'WHAT ABOUT A MINIMUM-MAXIMUM WAGE. AS TO INCREASING FAT CATS PAY WHILE SACKING THE LOWERE PAID, I SUPPOSE ITS A MUTATION OF SWINE FEVER.
ANYWAY WHO WATCHES THE DUMB DOWN BBC
- Alan Green, Woodford Green, 15/07/2009 08:51
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Is there too much duplication of effort at the Beeb? Too many titles and departments for the sake of empire building. Every figurehead requiring a huge staff of his or her own adding to costs. in the managerial and adminiastrative areas while producing very little origination in programme production?
Never mind all the mistakes on the real estate front!
- Peter Seekings-Foster, Mildenhall, Suffolk., 15/07/2009 07:33
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About time they sold the BBC off to the highest bidder.
- Shallotman, Basildon, 14/07/2009 17:35
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Why shouldnt these bosses receive big pay increases,isn't this the norm?
- Marcus, Bushey, 14/07/2009 16:37
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The rich will continue to rape the economy until the working class stand up and riot.It is the only language that these fat cats understand.
- Dave, london, 14/07/2009 16:22
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With bonuses being ended, hopefully for all Management, they can, if they want, resign in protest.....and see if they really can get a job elsewhere paying more. We know they are not telling the truth - Call their bluff!
- Gordonbay, London and Cape Town, 14/07/2009 16:16
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Save the BBC ! Get rid of its fat cats and lazy and sycophantic bureaucrats ! Get rid of rigged "boards" (interviews) !
- Hector Vigo, SPAIN, 14/07/2009 16:09
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Its pathetic and disloyal to all tv licence payers.
'''DISGRACEFUL'''
- C Cusano, Bedford, 14/07/2009 15:08
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Simple stop all Bonus's, it warrants a dispicable culture that degenerates the expectancy for all. BBC was at the forefront of the expenses scandal from Parliament, but coninues inhouse abuse of the system and hides transparency from general public that pays their wages.
- William, Hay~Heath UK, 14/07/2009 10:03
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Gary,go private,no thankyou,I would willingly pay double the licence fee rather than have to suffer commercial breaks,some of which go on so long one forgets what one was watching.
- Colin, Bristol, 14/07/2009 09:37
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Please no more television tax - the BBC is bloated and out of date. Scrap the tax.
- Taxfreetv, London, 14/07/2009 09:23
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Well, it’s a START.
Heaven forbid the BBC should lose the skills and abilities that produce fine nature (not now science, sadly) documentaries, drama like The Street and comedy like Psychoville.
But then again, we also have the layers of parasites in the management structure to account for as well as the genius who decided to pay obscene salaries Ross, Norton Clarkson etc, trash competitive makeover/DIY progs, exorbitant sports coverage, too many news anchors - cut these back, more cash for quality viewing.
Sack the head of science, sport and news programming, make all expenses and salaries public, then we can start the real debate of "What’s the BBC really worth, and how to go forward from here"
As I said before, it`s a start, but don’t think you’re off the hook yet - the public demands value for their money, you’re the BBC not HBOS!
- Darius Midwinter, London UK, 14/07/2009 08:28
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Mark Thompson should be able to afford a disposable razor on his £647,000 basic salary. The BBC gravy train should go private and give people true choice and the UK TV industry a fair and level playing field which no doubts sky will win as they are the only ones looking to offer something innovative.
- Gary, Brentwood, 14/07/2009 07:37
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