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BBC should cap payoffs at £150,000, says director general BBC should cap payoffs at £150,000, says director general
(5 months later)
The BBC's new director general, Tony Hall, has announced he wants to cap severance payments to senior managers at £150,000, following widespread criticism of the payoffs to executives including his predecessor, George Entwistle.The BBC's new director general, Tony Hall, has announced he wants to cap severance payments to senior managers at £150,000, following widespread criticism of the payoffs to executives including his predecessor, George Entwistle.
in a bid to address condemnation of the corporation's history of awarding large payoffs to executives including his predecessor who quit after just 54 days in the job.in a bid to address condemnation of the corporation's history of awarding large payoffs to executives including his predecessor who quit after just 54 days in the job.
Hall told a select committee of MPs on Thursday morning that the corporation could no longer be "tone deaf" to what the public have said about what are widely regarded as excessive payoff and redundancy payments. He said the new cap would be in line with civil service practice.Hall told a select committee of MPs on Thursday morning that the corporation could no longer be "tone deaf" to what the public have said about what are widely regarded as excessive payoff and redundancy payments. He said the new cap would be in line with civil service practice.
"We will consult on a £150,000 cap on redundancy and severance payments to reflect all senior managment, old and new ... It wasn't right, this level of payments," he told the Commons culture, media and sport select committee."We will consult on a £150,000 cap on redundancy and severance payments to reflect all senior managment, old and new ... It wasn't right, this level of payments," he told the Commons culture, media and sport select committee.
The BBC has been heavily criticised over payoffs in the past six months after it emerged that Entwistle was paid £450,000 after resigning at the height of the Savile scandal in November, just 54 days in the job. MPs on the Commons public accounts committee branded the payout a "cavalier" use of licence fee payers' money.The BBC has been heavily criticised over payoffs in the past six months after it emerged that Entwistle was paid £450,000 after resigning at the height of the Savile scandal in November, just 54 days in the job. MPs on the Commons public accounts committee branded the payout a "cavalier" use of licence fee payers' money.
The BBC's former chief operating officer, Caroline Thomson, left with £670,000 in September 2012 after she was beaten to the top job by Entwistle.The BBC's former chief operating officer, Caroline Thomson, left with £670,000 in September 2012 after she was beaten to the top job by Entwistle.
Mark Byford, the former director of journalism and deputy director general, was given a £949,000 redundancy payoff, while Sharon Baylay, director of marketing, was given a total of nearly £400,000.Mark Byford, the former director of journalism and deputy director general, was given a £949,000 redundancy payoff, while Sharon Baylay, director of marketing, was given a total of nearly £400,000.
MPs on the public accounts committee accused the BBC in November of "hosing down" executives with money when they left. They said they were "incredulous" at the scale of the severance deals.MPs on the public accounts committee accused the BBC in November of "hosing down" executives with money when they left. They said they were "incredulous" at the scale of the severance deals.
In February the BBC also faced questions over a £375,000 payoff to Roly Keating who was head of the corporation's archive, who left to become chief executive of the British Library.In February the BBC also faced questions over a £375,000 payoff to Roly Keating who was head of the corporation's archive, who left to become chief executive of the British Library.
"We need a BBC that's in tune with the times. We are having to deal with efficiencies, savings and cuts, but we cannot be tone deaf to what licence fee payers, the public out there, have said to us about payoffs, redundancies and so on," Hall told the committee."We need a BBC that's in tune with the times. We are having to deal with efficiencies, savings and cuts, but we cannot be tone deaf to what licence fee payers, the public out there, have said to us about payoffs, redundancies and so on," Hall told the committee.
Asked how many BBC executives the new cap would apply to and whether their severance deals would still be topped up through other means, such as extra pension payments, Hall replied: "No extra bits, and 250 people."Asked how many BBC executives the new cap would apply to and whether their severance deals would still be topped up through other means, such as extra pension payments, Hall replied: "No extra bits, and 250 people."
Hall, who started in the job three weeks ago after a decade at the Royal Opera House, also promised to take the axe to bureaucracy at the corporation.Hall, who started in the job three weeks ago after a decade at the Royal Opera House, also promised to take the axe to bureaucracy at the corporation.
"There is too much bureaucracy, process and structures that hinder rather than help," said Hall."There is too much bureaucracy, process and structures that hinder rather than help," said Hall.
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