Vallance to serve full term, says BT

British Telecom yesterday took the unusual step of formally denying that its chairman, Sir Iain Vallance, intends to step down early.

British Telecom yesterday took the unusual step of formally denying that its chairman, Sir Iain Vallance, intends to step down early.

Weekend reports said that Sir Iain, who has been BT's chairman for 13 years, intended to leave the company in the first half of next year - more than a year before his current contract expires.

BT generally refuses to comment on speculation about members of its board. But the weekend reports about Sir Iain drew a quick rebuttal. The statement read: "BT today denied speculation in weekend press reports that its non-executive chairman, Sir Iain Vallance, would leave the company before his contract expires. His contract runs until 31 July, 2002."

The reports of Sir Iain's early departure come at a difficult time for BT with its board under intense pressure because of the sharp fall in the share price and rising levels of company debt. Despite the denial there is still speculation that Sir Iain will go at BT's annual meeting next July when he hands over the chairmanship of Concert, BT's joint international venture with AT&T, to Michael Armstrong of AT&T.

Sir Iain will receive a £600,000 retirement bonus if he stays until July, 2002. Last year his pay was £746,000, including a £400,000 bonus.