Wednesday, July 13, 2005

BBC Executive bonuses

BBC executives have been rightly condemned for 30% bonus payments for good performance. How do you judge good performance when 'customers' have to buy your product each year regardless of whether they use it or not?

BBC chairman Michael Grade assures us that future bonuses will be no more than 10% of base salary. However, the BBC website fails to mention that Directors' base salaries "will be increased over the next two years to bring them into line with salaries that are typical of middle [pay] levels outside the BBC." Effectively, Directors will no longer need to perform as well to earn the same overall figure!!

If BBC Directors really are underpaid compared to their private sector rivals, they can always change jobs rather than expect a state funded monopoly to close any gaps in pay.

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