Monday, September 20, 2010

Personnel issues

She still doesn't get it.  This is Lucy Adams, Head of BBC People, quoted on BBC News, on how the corporation is dealing with top pay (on the back of tonight's Panorama).

"We have given up, all the executives have given up two months' pay. We have had a pay freeze for the next four years."   

There's an equally opaque quote from her in the Daily Mail's version.


We have had a pay freeze for the next four years and if our  pension review goes through for senior earners, then Mark will earn a significantly lower amount than he is today.’


In English, the Executive have given up a month's pay for each of the past two years (though Lucy Adams hasn't, as she only joined in June 2009). They've also "agreed" a pay freeze for two years and can reasonably expect that to continue for another two years.  Their "loss" depends on inflation over the next two years.

Meanwhile, the latest BBC pension offer requires other ranks who fancy a career average benefit scheme to contribute an additional 3% of their salary, on top of the current basic 4%.  That will feel like a real cut in income for BBC staff on an average of around £37k pa.   Lucy Adams' earnings for 2009/10 were £328k - made up of £267k basic, plus £12k in taxable benefits, and £49k to help with her pension.   Mark Thompson has that £49k "under review" (he gets a pension top-up of £163k himself), but it has not yet been formally cut.   Nonetheless, many will think that £267k remains a very good public sector salary.

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