Dyke's BBC ousting soothed by £456,000 compensation

LONDON - Greg Dyke was awarded £456,000 compensation after he was forced to resign as director-general, following the Hutton Report.

The pay-off, part of Dyke's contract, will be revealed in the BBC's annual report next week. The almost half-a-million-pound deal is more than his annual salary of £321,000 and bonus of £32,000, and brought his total earnings for the last year to £809,000.

Dyke went after the BBC was lambasted for its journalistic standards by Lord Hutton in his report, which cleared the government of wrongdoing and was highly critical of the broadcaster following Andrew Gilligan's report on Iraq's weapons of mass destruction on the 'Today' programme on May 29 last year.

Gavyn Davies, the former BBC chairman and Goldman Sachs economist who also resigned, received no compensation.

The biggest winner on the bonus front was Mark Byford, the deputy director-general who took on the role of acting director-general after Dyke went and picked up £100,000 for his three-month stint, bringing his total salary to £384,000. He lost out in the race for the top job to the Channel 4 chief executive Mark Thompson.

The report will also reveal that payments to the BBC's most senior executive directors rose in line with inflation, climbing just 1.9% to £4m and that total bonuses to BBC executives was £866,000.

The costs of running its London headquarters has dropped by 24% to £326m, which should fall further as the BBC committed in its charter review document to have 50% of its public service employees based outside London over the next 10 years and to invest £1bn outside London over the same time period.

Part of that calls for building up Manchester as the largest broadcast centre out of London, but it could mean job cuts as well.

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