Ex-BT boss pockets £3.7m final pay deal as group plans to axe 55,000 jobs

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BT’s erstwhile main executive Philip Jansen has been awarded his largest salary and prize package, a £3.7m reward for nan aforesaid twelvemonth successful which he announced plans to trim 55,000 jobs astatine nan telecoms institution by 2030.

The salary woody for Jansen, who was nicknamed Food Bank Phil aft nan institution group up a “community pantry” for telephone centre unit struggling to make ends meet, was revealed successful BT’s latest yearly report.

The sum includes a £2.6m prize for hitting targets linked to profit and cashflow, taking Jansen’s full net complete 5 years astatine nan institution to £16.8m.

Jansen joined BT successful 2019 aft reportedly making £50m from nan banal marketplace float of payments processing patient Worldpay. Under his stewardship, BT focused overmuch of its efforts connected rolling retired accelerated fibre broadband, nevertheless the company’s stock value besides halved during his tenure.

He near nan apical occupation astatine nan London-based telecoms institution successful January this twelvemonth aft announcing his volition to measurement down successful 2023. He remains employed arsenic an advisor until nan extremity of this month.

Thousands of unit are besides owed to time off BT aft Jansen announced sweeping occupation cuts successful May 2023, during nan aforesaid financial twelvemonth covered by his latest salary award.

BT said it would go a “leaner business”, reducing its workforce by up to 55,000 by 2030, much than 40% of its world worker base, including astir 10,000 jobs replaced by artificial intelligence.

Jansen said astatine nan clip that a “big chunk” of nan occupation cuts would beryllium successful nan UK, wherever nan institution is headquartered.

“Philip’s salary past twelvemonth was not affected by nan stated scheme to trim nan full number of BT labor complete nan adjacent 7 years,” a institution spokesperson said.

BT employs astir 130,000 unit globally, pinch astir 30,000 of those contractors done 3rd parties, and has astir 80,000 unit successful nan UK.

In 2022, nan institution was embroiled successful a labour conflict pinch staff complete pay, including a bid of strikes, during which nan Communication Workers Union (CWU) coined nan nickname Food Bank Phil.

The sanction related to claims that BT group up a nutrient slope astatine a telephone centre successful North Tyneside. BT said it was a “community pantry” for displacement workers pinch nary clip to spell to nan shops.

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In May past year, BT said it intended to trim its full workforce to astir 75,000-90,000 betwixt 2028 and 2030.

Last period BT disclosed a further £3bn of cost-cutting measures, saying it had highest finance successful nan rollout of its UK full-fibre broadband network. The institution besides raised nan dividend it pays to investors.

Jansen’s successor arsenic main executive, Allison Kirkby, has said she will proceed pinch his cost-cutting plans, pinch nan occupation simplification target unchanged.

A spokesperson said: “Philip’s basal net stayed level betwixt nan clip he joined BT successful 2019 and opinionated down arsenic main executive earlier this twelvemonth – but his wide remuneration past financial twelvemonth was higher, owed to stronger capacity outcomes against our prize measures, arsenic good arsenic nan truth that 2 tranches of his semipermanent stock awards vested successful [2024].

“A important proportionality of nan main executive’s remuneration is delivered done semipermanent incentives, wherever awards are linked to stock value movements complete nan longer term.”

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Source theguardian
theguardian