Sky bonuses linked to new dish sales

BRITISH SKY Broadcasting, the satellite television group, is planning to drop its controversial bonus scheme in favour of a long-term incentive plan for senior management linked to sales of digital satellite dishes.

If the scheme pays out in full, half-a-dozen senior BSkyB executives, including chief executive Mark Booth and the managing director of Sky Networks, Elisabeth Murdoch, will share in a payout of 3.5 million BSkyB shares, worth pounds 15m at yesterday's closing of 430p.

In a proposal to be put to its annual meeting on 30 October, BSkyB proposes the introduction of a three-year incentive plan linked to "long-range business measures derived from the company's business plan" and share performance relative to other British media and telecoms groups.

The move reflects Mr Booth's determination to concentrate BSkyB management on building long-term value rather than short-term profits.

The plan's targets, described by one insider as "demanding", are specifically linked to the number of subscribers BSkyB signs up to its new digital satellite service, launched at the start of the month. BSkyB's forecast is that it will have 6 million subscribers by 2003.

The plan replaces a controversial bonus package, dating from BSkyB's flotation in 1994, under which 1.5 per cent of annual profits was divided up between senior executives.

In the year to last June, Mr Booth received pounds 562,000 from the scheme, while Sam Chisholm, his predecessor as chief executive who is still on the payroll, received pounds 1.12m.

However, Sky insiders said Mr Booth felt the scheme discouraged executives from investing in the company. "If the advertising director asked for an extra pounds 10m on his budget, it would cut the chief executive's bonus by pounds 25,000," one said. "The new scheme is linked to long-term performance so it is more closely aligned to shareholders' interests."

Other directors benefiting from the plan are likely to be Martin Stewart, the finance director, Ian West, head of Sky Entertainment and Sky Sports chief Vic Wakeling.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

The saffron censorship that governs India

Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
Prince Charles' 'black spider' letters to be published 'within weeks'

Prince Charles' 'black spider' letters to be published 'within weeks'

Supreme Court rules Dominic Grieve's ministerial veto was invalid
Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

How did fandom get so dark?

Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
The galaxy collisions that shed light on unseen parallel Universe

The cosmic collisions that have shed light on unseen parallel Universe

Dark matter study gives scientists insight into mystery of space
The Swedes are adding a gender-neutral pronoun to their dictionary

Swedes introduce gender-neutral pronoun

Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

Disney's mega money-making formula

'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

Lobster has gone mainstream

Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
Easter 2015: 14 best decorations

14 best Easter decorations

Get into the Easter spirit with our pick of accessories, ornaments and tableware
Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

Paul Scholes column

Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

The future of GM

The greenhouses where Monsanto 'plays God' with the future of the planet
Britain's mild winters could be numbered: why global warming is leaving UK chillier

Britain's mild winters could be numbered

Gulf Stream is slowing down faster than ever, scientists say
Government gives £250,000 to Independent appeal

Government gives £250,000 to Independent appeal

Donation brings total raised by Homeless Veterans campaign to at least £1.25m
Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

The most borrowed book at Bank of England library? Oh dear

The book's fifth edition is used for Edexcel exams
Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

Cowslips vs honeysuckle

It's the hunt for UK’s favourite wildflower
Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

Did a botched blackmail attempt help Cyril Smith escape justice?

A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss