BECAUSE HE’S WORTH IT?


Biased BBC reader Alan picks up on this post by Steve Barclay as to whether a BBC manager could be paid £1 million pounds! Recession? What recession?

John Smith, Chief Executive of BBC Worldwide.

Mr Thompson was explicit in saying that no BBC manager is paid over a million pounds in total remuneration. He denied explicitly that Mr Smith was paid anywhere near the million pounds figure, saying “no that is not correct”.

Below are enclosed pages from the BBC Annual Review 2010/11 for BBC Worldwide which suggest that total remuneration may well be around the one million pounds mark

The BBC Worldwide 2010/11 Annual Review states that Mr Smith was paid a base salary of £440,000, together with £276,000 under the annual bonus scheme (he took half i.e. £138,000 this year and deferred the other half until 2014, with the potential if he meets performance targets of receiving an extra 25% on top of the deferred £138,000 taking it up to £173,000). He also collected £134,000 this year from a deferred bonus from earlier years.

In addition to his base salary and annual bonus, Mr Smith received £172,000 this year from a profit sharing plan. He also had £14,000 in taxable benefits, possibly the company car and private medical insurance for which he is entitled under his contract. This suggests a total income this year paid to him by the BBC of £898,000. Indeed that is the figure the BBC themselves put in their 2010/11 Annual Review.

Mr Smith is also allowed, during office hours it appears, to act as a non executive director of Burberry plc for which he earns a further £65,000. I do not know if he donates this to charity, but the enclosed annual review says executives are entitled to keep the income from one non executive director so this may further top up his earnings.

On top of this income, Mr Smith also receives payments into his BBC pension. The fund is currently valued at £3.3 million (Mr Smith is 52 years old and has worked for the BBC for over 20 years). It is unclear how much has been paid into the pension this year by the BBC, but the pension fund value has increased by £69,000. The BBC could have paid more or less than this into his pension, as this figure will be shaped by the the underlying performance of the pension fund impacting overall value.

So taking his total take home pay this year of £898,000, the difference between the annual bonus he drew this year and the amount deferred to 2014 (£39,000) albeit subject to future performance, his earnings from Burberry of £65,000 which he may keep, and the pension contribution roughly estimated at £69,000, Mr Smith as a BBC lifelong employee might well be earning over or close to one million pounds whilst holding a £3.3 million pension pot. Whatever the total amount, it is vastly different to the amount paid to BBC local radio staff.

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13 Responses to BECAUSE HE’S WORTH IT?

  1. John Horne Tooke says:

    19 Jul 2010: Job: chief executive, BBC Worldwide
    Age: 52
    Industry: broadcasting, publishing, digital media
    Salary: £480,000 (including £69,000 bonus)

    24 Jul 2011:

    Job: chief executive, BBC Worldwide
    Age: 53
    Industry: broadcasting, publishing, digital media
    Turnover: £1.16bn
    Salary: £898,000 (total remuneration)
    http://www.guardian.co.uk/media/johnsmith

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  2. David Preiser (USA) says:

    He’s worth the money to the BBC because Worldwide earns a fortune for them and is increasing its grasp all the time.  Delivering Quality First, naturally.

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    • Will says:

      How could it fail to make a fortune when it is given the product of £3.6billion of tax income to exploit?

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  3. Jonathan S says:

    i think his salary should be one million turds

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  4. ian says:

    Lovely piece of research, David. Wonder if he gets anything paid offshore…..

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  5. London Calling says:

    Advertise the job at one quarter of the salary and see if you can get anyone better. Its called market testing. A lot of the private sector has to do it all the time.

    They never do, because the whole bloated BBC pack of cards would collapse, starting with £800k Mark Thompson

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  6. My Site (click to edit) says:

    Maybe he and Gordon Brown could do a job swap, and see if anyone perceives any difference?

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  7. cjhartnett says:

    I do hope that Mark Sewotka splits a bottle of Bolly with Uncle Jim Naughtie after the patsy poltroon gently seved up gentle lob after lob, by way of “questions” regarding border security for next weeks day of dossing!
    Sewotka is just Kenneth Griffith from “I”m alright Jack”…and I wish he would also “f..f.ff..find someone “who`s actually got some questions that might test his attitudes.
    I don`t blame Mark…he can only work with the putty that he`s given.
    Gets him the day off from patrolling the Severn Crossing at least.
    And given Brodie Clarke and Theresa May…things can only get better on Wednesday by employing a few Surestart/quango blimps at the borders as opposed to Sewotkas Spoonies!
    Naughtie has all the fire of Alistair Burnet having wheeled Robert Robinson round Berkeley Square…maybe Pudsey could be called out to take Bob Crow on next…he could not do any worse that Jim the gimp!

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    • Umbongo says:

      The most difficult question lobbed by Naughtie was to ask what Sewotka would do at passport control: close down or let everybody in.  Sewotka’s answer was to the effect that  the government should re-start talks with the union ie he flunked it.  After that pressure point, Naughtie returned with relief to the usual chat between two Labour stalwarts.  Not one question was posed that clarified or put into context Sewotka’s justification for the strike.

      I know Sewotka is, as they say, challenged in the brain-power stakes: hence the breaks given to him at the BBC.  After all, within living memory Evan Davis had to take over the union seat when Sewotka and, I think, Francis Maude were discussing this matter on Today back in June (noted somewhere in this B-BBC thread http://biasedbbc.org/2011/06/unaffordable-and-untenable.html ) and Serwotka failed to score even given the opportunity of an open goal unguarded by a CINO quasi-socialist.  Surely, in the words of a recent commenter, even an incest-interview between Naughtie and a BBC industrial/political editor would have shed more light on next Wednesday’s strike of the parasites.

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  8. cjhartnett says:

    Wonder if assorted Thomson,Thompsons at the BBC have shares in Dominos pizzas tthen?
    Why else would Winifred Robinson be reading out their two for one deal or what-have-you on You and Yours earlier?
    Spurious link was the Food Programme “Fast Food of the Year award…some blokes going round Oxon on wood burning stoves with pizza wheels and turbines…no, wasn`t listening but you`ll put it together.
    So a puff for their upcoming lame show that patronises the chaps who don`t just slice kebabs for you manages to inform us of Dominos latest offer.
    Didn`t there used to be rules about advertising at the BBC…or is it pizzas all round as they stitch together next Wednesdays Insurrection of the Proletariat for us in advance.
    Oh…phone hacking eh…I for one need to know more BBC…more!
    No shortage of hacks there…but no-one need find out what THEY think…not much, but transparent and predictable…like a flea-ridded sheepdog who might save us a vets bill if we turn our backs!

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  9. dave s says:

    Regrettably ,because it will really hurt ordinary people, I am firmly convinced that only a devastating economic collapse will rid us of the parasites of all types afflicting this nation. Only harsh reality will end this unreal farce of an economy and body politic.

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    • David Preiser (USA) says:

      On the contrary, dave, I think that economic collapse will rid you of all the commercial media, and the only thing left will be the State-funded BBC.  Even if nobody can pay the license fee anymore, the government would still fund it.

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