BBC top brass turn down £350,000 bonuses

LONDON - Top BBC executives, including director-general Mark Thompson, have turned down bonuses worth £350,000 this year as the corporation faces cutbacks following a lower than expected licence fee.

The BBC's annual report, due to be published on July 3, will confirm that members of the BBC direction group has waived its right to bonuses of up to 10% of their base annual salary.

While this is the third consecutive year Thompson has given up his bonus, it is the first time he has been joined by other members of senior management.

They include: Mark Byford, deputy director general; Jenny Abramsky, director of audio and music; Jana Bennett, BBC Vision director; and Tim Davie, director of marketing, communications and audiences.

Other BBC bosses to waive their right to a bonus include: Steve Kelly, BBC people director; Ashley Highfield, BBC future media and technology boss; Caroline Thomson, chief operating officer; and Zarin Patel, finance director.

John Smith, BBC Worldwide chief executive, has also decided to forgo his bonus this year.

Thompson said: "Overall this has been a strong year for the BBC both creatively and managerially. All of my colleagues on the BBC direction group met the majority of their objectives and were eligible for bonuses as part of their contracts of employment. However, they and I have collectively decided to waive this contractual right on this occasion.

"I have told my fellow directors that I would expect them to resume their participation in the BBC executive bonus plan, as long as performance objectives are met in the usual way in future years."

The report will also reveal that the BBC failed to reach its diversity targets because of cuts in recruitment. The corporation wanted to ensure that 12.5% of all staff and 7% of senior managers were from ethnic minorities by the end of 2007. However, an efficiency drive has led to a freeze in new appointments.

There are likely to be more job cuts following the government's decision to break the link between the rise in the licence fee and inflation in January.

As a result, the BBC licence fee will only rise by 3% in the two years from April 2007, by 2% in the next three years and between 0% and 2% in the final year. The BBC's borrowing limit was also restricted to £230m, rather than the £400m it had requested.

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