This report explains the remuneration policy of the Â鶹Éç for the Â鶹Éç World Service Management Board. Details of Management Board
remuneration are included within Note 3C to the financial statements.
The remuneration package for the Director, Â鶹Éç World Service is set by the Director, Â鶹Éç Global News Division, and approved by the
Â鶹Éç Director-General and the Director, Â鶹Éç People.
The Director, Â鶹Éç World Service assesses the performance of the Management Board members before recommending their annual
remuneration and bonus awards.Their remuneration is approved by the Â鶹Éç Director-General and the Director, Â鶹Éç People. Â鶹Éç
World Service’s Human Resources Director provides technical support to the Director, Â鶹Éç World Service in this respect, but has no
input into decisions affecting her own remuneration.
The Â鶹Éç aims to ensure that the packages offered to Management Board members:
- enable Â鶹Éç World Service to attract, retain and motivate high-calibre executives
- remunerate individuals fairly for individual responsibility and contribution, while providing an element of performance-related pay,
reflecting the underlying performance of Â鶹Éç World Service
- take into account salary policy within the rest of the Â鶹Éç and the relationship that should exist between the remuneration of
Management Board members and that of other employees
The remuneration arrangements for Management Board members include the following components:
Base pay is reviewed in August each year, taking into account external market levels and internal comparisons as well as the individual’s
responsibilities and performance.
Recognising the importance of maintaining a balance between base pay and an annual bonus scheme reflecting individual performance
and contribution, Management Board members are eligible to receive a bonus of up to 10% of base pay for meeting certain
performance targets. Qualitative and quantitative objectives are set at the beginning of the financial year, and performance is reviewed at
the end of the year. Bonuses are reflected in the financial statements on an accruals basis for the performance period under review.
Actual payments are made in August each year.
In addition to salary and bonus, the main contractual benefits provided to Management Board members are a car allowance, private
health insurance, pension and life assurance. Some members of the Management Board are also entitled to a car fuel allowance.
Management Board members are eligible to participate in the Â鶹Éç Pension Scheme, which generally provides salary-related pension
benefits on a defined benefit basis, with an accrual rate of 1/60th of final salary per year of service, subject to the Inland Revenue
earnings cap where appropriate. Only base pay is pensionable.The scheme provides for early retirement on medical grounds and life
assurance cover of four times base pay up to a prescribed limit.
The number of senior employees (excluding Management Board Members) earning over £50,000 per annum is set out below:
| Annual Earnings to 31 March 06 |
Headcount |
| £50,000 to £59,999 |
105 |
| £60,000 to £69,999 |
31 |
| £70,000 to £79,999 |
16 |
| £80,000 to £89,999 |
9 |
| £90,000 to £99,999 |
1 |
| Total |
162 |
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