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BBC pay-offs to be capped at £150,000 | BBC pay-offs to be capped at £150,000 |
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The BBC is to limit pay-offs to its managers to a maximum of £150,000 following criticisms over the scale of redundancy packages paid to executives. | The BBC is to limit pay-offs to its managers to a maximum of £150,000 following criticisms over the scale of redundancy packages paid to executives. |
The new director general, Tony Hall, said the organisation "could not be tone-deaf" to what the public have said about large pay-offs. | The new director general, Tony Hall, said the organisation "could not be tone-deaf" to what the public have said about large pay-offs. |
The BBC was accused of "rewarding failure" over the £450,000 paid to Lord Hall's predecessor, George Entwistle. | The BBC was accused of "rewarding failure" over the £450,000 paid to Lord Hall's predecessor, George Entwistle. |
Lord Hall said the BBC would consult on the plans with staff and unions. | Lord Hall said the BBC would consult on the plans with staff and unions. |
"I appreciate that making changes to existing contracts is never easy. But it is to the great credit of the senior leadership team at the BBC that there is broad recognition of the need for change," he said, in a statement. | "I appreciate that making changes to existing contracts is never easy. But it is to the great credit of the senior leadership team at the BBC that there is broad recognition of the need for change," he said, in a statement. |
Public mood | Public mood |
Speaking about the proposals to MPs at the commons culture committee, Lord Hall said they represent a "fair way forward" for staff and for licence fee payers. | Speaking about the proposals to MPs at the commons culture committee, Lord Hall said they represent a "fair way forward" for staff and for licence fee payers. |
"I am committed to lowering senior management pay level, but I also want to get the best people. We are in a competitive market," he said. | "I am committed to lowering senior management pay level, but I also want to get the best people. We are in a competitive market," he said. |
The National Union of Journalists has welcomed the plans. "I hope this is the first of a number of measures by Lord Hall to cut waste at the BBC," said General secretary Michelle Stanistreet. | The National Union of Journalists has welcomed the plans. "I hope this is the first of a number of measures by Lord Hall to cut waste at the BBC," said General secretary Michelle Stanistreet. |
The measures, which are due to take effect in September 2013 will affect 250 people, Lord Hall added. | The measures, which are due to take effect in September 2013 will affect 250 people, Lord Hall added. |
"We are consulting with staff and unions. It's a contractual change for senior managers and other members of staff, which we rightly have to consult on. | "We are consulting with staff and unions. It's a contractual change for senior managers and other members of staff, which we rightly have to consult on. |
"I am confident we will get the agreement and people will see the sense of it. It is a matter of principle for me and something that responds to the public mood." | "I am confident we will get the agreement and people will see the sense of it. It is a matter of principle for me and something that responds to the public mood." |
The proposals entitle senior managers to a redundancy package of one month's pay for each year of service up to a maximum of 12 months' salary or £150,000 - whichever is the lower. | The proposals entitle senior managers to a redundancy package of one month's pay for each year of service up to a maximum of 12 months' salary or £150,000 - whichever is the lower. |
Lord Hall said the measures bring the BBC into greater alignment with other industry bodies and the Civil Service, who have a similar pay cap. | |
The BBC has come under fire for the severance packages, following a number of high profile departures from the corporation in recent years. | The BBC has come under fire for the severance packages, following a number of high profile departures from the corporation in recent years. |
In September 2012, the former chief operating officer, Caroline Thomson left the BBC with a pay-off of £670,000, while the deputy director general Mark Byford received £949,000 when he left in 2011. |