Mark Thompson, the director-general of the BBC, has waived his performance-related bonus, potentially worth more than £135,000, in a bid to defuse a potential row as the Corporation undergoes a massive restructure, leading to mass redundancies.
Up to 4,000 jobs could be lost as a result of Thompson's restructure and he waived the bonus, which would have come on top of his £453,000 salary, as a gesture because of these changes.
Elsewhere in the BBC's annual report, Michael Grade, the chairman of the BBC, announced that in future, performance-related pay for top executives would now be capped at 10 per cent rather than the existing 30 per cent.
Grade has also told the BBC management to improve the value-for-money offered by its controversial digital TV stations. He said BBC3 was making good progress, although there was "more to do". Despite an increase in spending on the channel, Grade, speaking on behalf of the BBC governors, ruled that not every part of the schedule was a success.
Grade also praised BBC1, but demanded the channel show fewer peaktime repeats and make more effort on comedy, drama and innovative formats.
The governors expressed concern that the number of factual programmes in peaktime had declined.
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