Insights from the UK and beyond
As part of its efforts to counter the bite of the economic downturn, the BBC is suspending bonuses and reviewing the pay scales of its executives. It is also set to reduce the amount it spends on talent.
The BBC is making the cuts in reaction to its dominant role during the recession compared with its struggling competitors, as well as to its own financial challenges, Michael Lyons, the head of the BBC Trust, said.
“There has been considerable disquiet in recent weeks about the salaries of top BBC staff,” Lyons said.
The BBC announced this week that Worldwide revenues are in excess of 1 billion pounds, but that profits before interest, tax and exceptional charges were down to 86 million pounds from 118 million the previous year.
from Global Investing:
Public critisicm may be heating up against banking executives being rewarded with huge bonuses despite taking too much risk (especially ex Merill Lynch head John Thain who requested a bonus and spent $1,405 on a garbage pail during a $1.22 million renovation of his office).
However, there are smaller fish who are being rewarded after doing something similar -- taking too much risk and choosing the wrong bank in which to put their deposit. We're talking about those who deposited in the collapsed Icelandic bank Landsbanki.