BT ‘to slash executive pensions’ in pay shake up
BT is reportedly set to cut its top executives’ pension allowances and link their bonuses to sustainability targets, as part of an executive pay shakeup by the telecoms giant.
BT has started the latest phase of a shareholder consultation including a proposal to slash chief executive Philip Jansen’s maximum remuneration package from £8.3m to £5.6m, Sky News reported.
Under the plans, Jansen would face having his pension allowance reduced next year from 15 per cent of his £1.1m salary to 10 per cent, bringing him in line with the company’s average employee.
Chief financial officer Simon Lowth would also have his pension allowance reduced from 30 per cent to 10 per cent of his basic pay over three years.
The executives would also have 20 per cent of their annual bonuses linked to factors including progress towards BT’s target of reducing carbon emissions by 87 per cent by 2030, and the number of the company’s customers connected to new 5G networks.
Another proposed measure being consulted on is increasing Jansen and Lowth’s minimum shareholding requirement to five times their salaries, according to Sky News.
BT’s proposed cuts to executive pensions follow a series of high-profile investor revolts over remuneration at FTSE companies.
A quarter of FTSE All-Share businesses were rebuked by at least 20 per cent of their shareholders on a range of issues last year, according to data from industry body the Investment Association (IA).
BT shareholders are set to vote on the proposals at the company’s annual meeting in July.
BT declined to comment.