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BBC stars 'only paid market rate' BBC stars 'are not paid too much'
(2 days later)
The BBC has a "firm grip" on the amount it pays its biggest names, according to the corporation's governing body. The likes of Jonathan Ross and Chris Moyles are not receiving salaries above the market rate, according to a review of how the BBC pays its top names.
The BBC Trust commissioned a review after salary details were leaked last year, including a three-year deal for Jonathan Ross reportedly worth £18m. The report, commissioned by the corporation's governing body, the BBC Trust, says in some cases stars get paid less than they would elsewhere.
Speaking ahead of publication, the trust's chairman Sir Michael Lyons said the situation was "not as bad as some people thought it might be". The top 30 to 40 stars across all TV and radio each earn more than £1m a year, the report added.
But he warned that more could be done in negotiating contracts and salaries. But it said the BBC should "walk away" from stars who are too expensive.
Appearing on BBC Breakfast, Sir Michael refused to discuss individual cases, and said the trust's report would not disclose details of star's pay deals. The BBC should use its position to drive prices down, the report stated.
"It would put the BBC in a very difficult position in relation to retaining staff who could work elsewhere," he said. 'Difficult position'
New talent The review was commissioned after some salary details were leaked to the press, including a three-year deal for Jonathan Ross reportedly worth £18m.
The chairman also rejected suggestions that the BBC had exceeded the going market rate for its most famous faces. Other figures suggested that Jeremy Paxman was paid £940,000 a year and Radio 2's Sir Terry Wogan got £800,000 a year, while Radio 1 breakfast host Chris Moyles took home £630,000.
"The BBC doesn't pay more than others and indeed there has been a firmer grip on talent costs in recent years," he said. "In some cases we pay less than others." The Trust found that the top 10 earners in TV and radio can take home earn more than £2m.
The BBC has a list of its top 50 "named talent", the report stated, whose earnings are rising "significantly faster than the recent 6% annual rate for total talent spending".
Sir Michael Lyons speaks on BBC Breakfast
In 2006/7, the BBC made an investment of about £242m in on screen and on air talent which represented around 5.6% of its total licence fee expenditure.
The vast majority of its 200,000 talent contract payments were for less than £1000.
But the trust's report found that there was "no evidence that the BBC is paying more than the market price" for its top names.
However, it does note that the salaries paid "to a small number of top talent working in network radio are much higher than those offered on commercial radio".
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The BBC said this was because certain radio personalities could expect to find work for a higher salary in television, film or music if they were not contracted by the BBC.
The report also suggests that some news journalists may be paid above the market rate, although it acknowledges that there is no direct competition as Sky or ITN "might have very little interest in those covering less popular areas of the news agenda".
Speaking ahead of the report's publication, the trust's chairman Sir Michael Lyons said the situation was "not as bad as some people thought it might be".
"The BBC doesn't pay more than others and indeed there has been a firmer grip on talent costs in recent years.
"In some cases we pay less than others."
But he added: "This is not a green light for the BBC to pay whatever it wants", adding that the corporation should do more to develop new talent.But he added: "This is not a green light for the BBC to pay whatever it wants", adding that the corporation should do more to develop new talent.
Some licence fee-payers, politicians and rival broadcasters have raised concerns the BBC pays its stars too much. Sir Michael refused to discuss individual cases. "It would put the BBC in a very difficult position in relation to retaining staff who could work elsewhere," he said.
The reported Ross deal was said to have influenced multi-million pound contracts struck by ITV to secure the services of Simon Cowell and Ant and Dec. But he warned the BBC that there was still "more to be done".
But BBC director general Mark Thompson defended the top pay deals in front of a Commons select committee last year, saying that a BBC which did not secure big stars would not please the public. "Because the BBC is paid for by the licence fee, it doesn't have to follow the market, can afford to be distinctive, has got the scope to bring on new talent and must walk away from those which are too expensive."
The pay review by economists Oliver & Ohlbaum Associates, which began in the autumn, is due out later. The BBC has welcomed the report and says it has already put some of the trust's recommendations into practice.
A number of broadcasters and independent production companies were consulted as part of the review including ITV, Channel 4, Five, BSkyB, and Endemol.HAVE YOUR SAYThey pay Jonathan Ross too much. They could get several up and coming stars and train themClifford Feary, NorthamptonSend us your comments
Spokesmen for ITV and Channel 4 said that they were unlikely to comment on the report.
Shadow culture secretary Jeremy Hunt criticised the review saying: "This report has totally missed the point."
"Jonathan Ross may well be worth £18 million on the open market, the question is whether the BBC should be paying for this with licence fee payers' money when commercial broadcasters would be more than willing to pay it at no cost to the public."
Liberal Democrat culture, media and sport spokesman Don Foster said: "While some people will question whether top personalities are worth the high salaries they receive, no-one wants to see a BBC devoid of household names.
"If we want the BBC to keep up with its competitors, then we have to accept that top talent comes with an expensive price tag."
The Department for Culture, Media and Sport declined to comment, saying it was a matter for the BBC.
The pay review was carried out by economists Oliver & Ohlbaum Associates.