BT Boss Set To Receive Bonus Of £5 Million
Ian Livingstone expected to get 2.13 million shares for his role in BT’s recovery
The chief executive of BT is set to pick up a bonus in the region of £5 million for his part in turning around the telecoms company’s fortunes.
Ian Livingstone is expected to receive 2.13 million shares, valued at 226p each based on last week’s closing price, the Sunday Times reports.
Three-year incentive plan
Livingstone’s reward comes three years after the telco posted heavy losses, prompting many top-level staff to defer a share plan until financial targets were met.
“More than a thousand BT people, including top management, are expected to benefit from a three-year performance-based incentive share plan vesting later this year, after hitting stretching cash generation targets and out-performing other European telecoms operators in terms of shareholder return,” BT said in a statement.
“BT’s cash generation has improved significantly over the past three years allowing us to reduce net debt, pay progressive dividends, invest in the future of the business and make the recently announced £2 billion payment to reduce the deficit in the BT Pension Scheme.”
Since 2009, BT’s share price has increased three-fold, accredited partially to Livingstone who slashed 30,000 jobs and turned around the company’s Global Services IT division.
The Sunday Times highlights that Livingstone’s £5 million in shares comes on top of his salary and other bonuses, which mounted to £3.8 million last year.
Others expected to benefit from the mass share distribution are Tony Chanmugam, BT’s finance director, and Gavin Paterson, BT’s head of retail, who will receive shares worth £2.2 million and £2.4 million respectively.
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