BT CEO Sir Peter Bonfield's Pay Package Skyrockets 46% to $1.1 Million

Strategic Insights -

British Telecom's (BT) CEO, Sir Peter Bonfield, saw his annual pay and bonus package surge to $1.1 million in the year to March 31, amid flat profits and the collapse of a proposed merger with MCI. Despite a modest increase in basic salary, Bonfield's total remuneration was boosted by a significant rise in annual bonuses and the award of a "golden handcuff" bonus of $163,000 in shares. This brings the total pay package of BT's top executives, including Chairman Sir Iain Vallance and Finance Director Robert Brace, to a combined $2.572 million.

Key Takeaways:

  • Sir Peter Bonfield's total pay package increased by 46% to $1.1 million in the year to March 31.
  • His basic salary rose from $499,000 to $570,000, with an additional $325,000 in annual bonus, up from $225,000 last year.
  • Bonfield received a "golden handcuff" bonus of $163,000 in shares, conditioned on him remaining with the company for at least three more years.
  • The collapse of the MCI merger, which would have earned Bonfield up to $500,000 more, did not deter his pay increase.
  • BT's pre-tax profits for the year to March 31 were $3.219 billion, compared with $3.203 billion for the previous year.
  • The company's bonus schemes, revealed in last year's annual report, could see Bonfield's total package exceed $1 million for the current financial year, given his increased basic salary.
  • Chairman Sir Iain Vallance saw his total pay package jump from $702,000 to $862,000, including a $325,000 bonus, while Finance Director Robert Brace received a total of $544,000.
  • The top three executives shared $685,000 in bonuses last year to reflect their work on the MCI merger proposals.

Statistics:

  • $1.1 million: Sir Peter Bonfield's total pay package for the year to March 31.
  • 46%: Increase in Bonfield's total pay package compared to the previous year.
  • $499,000: Bonfield's basic salary for the previous year.
  • $570,000: Bonfield's increased basic salary for the year to March 31.
  • $325,000: Bonfield's annual bonus for the year to March 31.
  • $3.219 billion: BT's pre-tax profits for the year to March 31.
  • $3.203 billion: BT's pre-tax profits for the previous year.
  • $1 million: Potential total package for Bonfield for the current financial year, given his increased basic salary.
  • $702,000: Sir Iain Vallance's total pay package for the previous year.
  • $862,000: Vallance's total pay package for the year to March 31.
  • $544,000: Robert Brace's total pay package.
  • $685,000: Shared bonuses for the top three executives last year.

Sources:

  • [The Financial Times]
  • [The Telegraph]
  • [BT's annual report and accounts]
  • [The Times]