BT’s Pay Puzzle: A CEO Bonus that Stirred the Crowd
BT is looking to bite the bullet and rethink how it settles with a high‑level executive after a recent bonus sparked quite a debate among its shareholders.
How the Bonus Became a Hot Topic
- Gavin Patterson, BT’s outgoing chief executive, walked away with a bonus that topped £1 million.
- At the same time, BT’s stock had already slipped by 30 percent—a pretty juicy combination for anyone watching the numbers.
- When shareholders got together in July, more than a third voted no to the remuneration report, putting the board in a bit of a pickle.
Shareholder Sentiment: “Is this Really the Value We’ve Earned?”
Many investors felt the sum didn’t line up with the company’s performance or the value actually delivered to them. The sentiment was pretty clear: the bonus seemed to fall short of what the stock‑market performance warranted.
BT’s Response: Ready for Change
In its statement, BT admitted the board was disappointed with the outcome of the vote. The company made it clear that it’s taking the evidence seriously and is ready to make changes to its processes for determining executive pay.
What’s Next?
Although no exact timetable is offered yet, BT has signaled a commitment to make the pay structure more transparent and aligned with long‑term performance. It’s a move that may keep future CEO bonuses in line with the “value” most shareholders actually care about.
In the world of executive compensation, one bonus can set the stage for a full review. BT’s next steps could set a new standard for how tech leaders are rewarded.
