Verwaayen bags £3m package

BT chief Ben Verwaayen bagged more than £3m in pay, perks and bonuses during the telco's last financial year.

The group's annual report, released today, showed the Dutchman received a basic salary of £700,000 and a bonus of £849,000 for hitting targets on earnings growth, customer satisfaction and free cashflow.

Verwaayen has overseen a restructuring that helped slash BT's debt and revive profits. These climbed 44% to £1.8bn in the year ended March, before tax, goodwill amortisation and one-off charges.

But its share price, at 192p, is 25% lower than on the day Verwaayen was named chief executive in December 2001. BT also missed its revenue growth targets last year.

BT's remuneration committee has decided that there should be no increase in base pay for executive directors in 2004.

The annual report showed Verwaayen also received relocation expenses of £200,000 when he moved from the US in February 2002 and a housing allowance, worth £250,000 a year until January 2005.

Verwaayen also received a pension allowance of £140,000 and was awarded £849,000 in deferred bonuses payable in shares in three years' time. In his first year Verwaayen earned £491,000, including deferred bonuses.

The report also showed part-time chairman Sir Christopher Bland received a total £512,000, including a basic salary of £500,000. In 2002 he took home £461,000.

Last week BT said it would hand its 100,000 workers shares worthan average £340 each after the giant fulfilled its promise to improve customer satisfaction and grow earnings by at least 25% a year.