British broadband and mobile provider, BT Group, had to literally reduce the bonus offered to its former chief executive officer, Gavin Patterson, by half. Patterson, who left BT in January, has been replaced by Philip Jansen now.
Towards the end of last year, when some shareholders had objected to the high bonus paid to Patterson, BT had revealed its intention to change the way decisions are made with regard to the salaries of the management.
The fact that BT had paid about $ 1.3 million, that is, about £ 1 million to Patterson as bonus did not go down well with the investors. It raised eyebrows more because this heavy bonus was paid to him at a time when the stock of BT had fallen by 30 per cent, in 2017-18.
The decision to cut the bonus was taken in the interest of all the shareholders. For the financial year 2018-19, Patterson will now receive a bonus of £572,000 instead of the £1.3 million he was supposed to get last year. As per the annual report of BT, his total salary for the year was £1.72 million.
Patterson had run BT for almost five years, and had laid off 13,000 people in an endeavour to resolve multiple issues that plagued the Group. It was during his tenure that the Group faced high-levels of competition and was struggling to improve the performance of its IT services unit. There was also a pension deficit and his broadband plans were not quite popular.
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