BT chief Gavin Patterson suffers multi-million pay cut following accounting scandal

Gavin Patterson took home £1.35m for the most recent year, a dramatic reduction from the £5.28m last year

Josie Co
Business Editor
@JosieCox_London
Thursday 25 May 2017 15:50
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BT confirmed it it cut chief executive Gavin Patterson's bonus after an accounting scandal in its Italian operation.
BT confirmed it it cut chief executive Gavin Patterson's bonus after an accounting scandal in its Italian operation.

BT has dramatically cut chief executive Gavin Patterson’s pay, as the telecoms giant struggles to recover from a damning accounting scandal in its Italian business that caused it to issue a profit warning and sent shares tumbling.

According to the group’s annual report published on Thursday, Gavin Patterson took home £1.35m for the most recent year, a dramatic reduction from the £5.28m he was handed last year.

His benefits package was cut from £57,000 to £53,000 but his base salary was nudged 2.5 per cent higher to £993,000.

Earlier this month BT said that it was slashing 4,000 jobs over the next two years, as it struggles to recover from that accounting scandal and a subsequent profit warning, while also navigating generally rocky markets.

It posted fourth-quarter revenue of £6.12bn, up 10 per cent, and adjusted earnings of £2.07bn, up 2 per cent, which was roughly in line with forecasts.

Adding to the company’s recent woes, BT in March was slapped with a record fine of £42m by regulator Ofcom and agreed to pay rivals as much as £300m, after it admitted to breaching rules by failing to compensate other operators over delays to installing Ethernet lines.

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