Former BT boss secures £3.7m final pay deal despite drop in profits

Philip Jansen’s final pay package was around a quarter higher than the previous year despite a fall in profits and heavy cost-cutting at the firm.

Henry Saker-Clark
Thursday 06 June 2024 12:45 BST
Philip Jansen was replaced as chief executive at the end of January after five years leading the company (BT Group/PA)
Philip Jansen was replaced as chief executive at the end of January after five years leading the company (BT Group/PA) (PA Media)

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BT has revealed it handed former boss Philip Jansen a £3.7 million final pay package despite the telecoms giant revealing lower profits and extending its cost-cutting efforts.

Mr Jansen was replaced by Allison Kirkby as chief executive of BT at the end of January after five years leading the company.

The firm’s latest annual report revealed that the former boss’s total pay deal jumped by 25.8% to £3.72 million for the financial year to March 31.

It came despite Mr Jansen receiving lower fixed pay – down to £1.11 million from £1.32 million a year earlier – after leaving the company 10 months into the financial year.

This included a £917,000 salary, as well as his pension allowance and benefits, which included £79,000 on the cost of a car and personal driver.

His higher pay package was driven by a jump in his bonus payments, with total variable pay rising to £2.6 million from £1.63 million a year earlier.

This included an annual cash bonus of £1.45 million and £1.15 million in shares through the firm’s restricted share plan.

Meanwhile, his replacement Ms Kirkby received £341,000 for the final two months of the financial year, including £25,000 for relocation.

Upon her appointment, BT said she will earn £1.1 million a year plus an annual bonus worth as much as double her salary depending on the firm’s performance.

BT’s chief finance officer Simon Lowth also received a higher pay deal for the year, up at £2.69 million for the past year from £1.95 million a year earlier.

The pay rises come despite BT recording a 31% drop in pre-tax profits to £1.18 billion for the year to March.

BT has also said it plans to cut costs by a further £3 billion over the coming years.

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