Sir Peter Bonfield, British Telecommunications' chief executive, stands to gain an extra £3.3m in share bonuses on top of the £1.8m package he was given for the last financial year.
BT's annual report and accounts for the year to 31 March 2001 show that Sir Peter's long-term incentive awards will be preserved "subject to satisfaction of the performance criteria" when he leaves the company at the end of next year.
The document reveals Sir Peter has been awarded 585,895 shares under an incentive scheme, worth £2.5m at BT's closing share price yesterday. He has also been awarded 186,332 shares as a deferred bonus, worth about £800,000 at yesterday's close.
In the year to 31 March, Sir Peter was paid a £780,000 basic salary plus a £481,000 bonus and £50,000 of other benefits including pension. He also received a deferred bonus, payable in shares in three years' time, of £481,000. His salary was increased to £820,000 a year from 1 April, and he also holds options over 6,460 shares which can be exercised from August at 267p, compared to the current 427.75p price.
BT yesterday remained tight-lipped on the terms of Sir Iain Vallance's new contract as "president emeritus". Sir Iain was replaced as chairman last month by Sir Christopher Bland.
The company had previously said that details of Sir Iain's salary would be made public once its report and accounts were published. But, a spokesperson for BT said yesterday that the company did not have to disclose them because he was no longer a director. BT said details would be disclosed in next year's report.
Sir Iain was awarded a £600,000 termination bonus which he receives when his contract expires in July 2002.Reuse content