The BBC was itself in the news again last week as the Corporation’s 2007-8 annual report was published.  Of course what attracted most media attention was the executive pay awards in a year when the BBC announced 1,800 job cuts over a 5-year period to plug the funding gap. Director-General Mark Thompson chose not to take his bonus award while other executive directors, including the Director of BBC people, claimed their bonus awards.

The broadcasting Trades Union Bectu heavily criticised the decision at a time when jobs are being lost. The BBC remuneration report certainly makes interesting reading if you compare the double digit increases in total remuneration for some executives compared to last year. However, the report makes it clear that the Corporation should not lead the market on pay and, in it’s own words, should be ‘positioned around the median of the market’ for base pay. While the outcome may not be excessive relative to some private sector executive awards, it raises the question of how a publicly accountable body should reward it’s top team.

What about the pay increases? And should the BBC be awarding bonuses at such a time? Or are these changes just part and parcel of the change process? What do you think?

Have a look at the Just Rewards newsletter on executive reward.

Tags: BBC, Bectu, Economic Downturn, Executive Remuneration