BBC directors set to pick up £1.4m in annual bonuses

LONDON - The BBC is set to award its senior management bonus payments totalling £1.4m when it releases its annual report in July.

The payments will be drawn up by the corporation's board of governors based on comparisons with bonuses awarded at other broadcasters, stock market-listed companies and government agencies.

Under the scheme, key members of the BBC's executive committee will receive up to 30% of their salaries for reaching performance-related targets.

Director general Greg Dyke, who is reported to be keen to scrap the payments, is set to receive £100,000 on top of his £360,000 salary. BBC Worldwide chief executive Rupert Gavin, who reportedly earns £270,000, and Roger Flynn, chief executive of BBC Ventures with a reported salary of £188,000, are also in line for performance-related payments, according to a report in the Mail on Sunday.

The payments will fuel the argument that the BBC abuses its licence fee money, even though the corporation has made savings of £1m a day in the last year.

The broadcaster receives £2.5bn from the licence fee and its commercial arm BBC Worldwide contributes revenue to the publicly funded business. Worldwide is set to report an increase in revenues of 15% to £700m at the annual report.

The Tory party recently commissioned a task force headed up by former Five chief executive David Elstein to look into whether the broadcaster should carry advertising.

The review is likely to pave the way for a Tory manifesto pledge at the next general election to cut the £112-a-year licence fee. A reduced fee, or direct Treasury funding, would safeguard the BBC's public service commitments and it would be partly funded by advertising or subscription.

Last month, shadow culture secretary John Whittingdale blasted the BBC for abusing its position as a public service broadcaster to compete unfairly with its commercial rivals after it emerged that BBC Worldwide has launched Inversion Records, a new record label.

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