BT chief executive to receive £5m bonus after cutting 30,000 staff

The boss of BT is thought to be in line to receive a £5 million windfall after overseeing a turnaround at the telecoms giant.

BT chief executive Ian Livingston is reported to be enjoying the benefit of a long-term bonus deal, which gave out tens of millions of shares to top staff at a time when the company reported its first ever loss.

The 47-year-old Scot reportedly received two million shares, which were deferred for three years with the condition that they would only pay out if all its financial targets were met.

But since then BT’s share price has more than trebled after the chief executive cut 30,000 roles and turned around the problematic IT services division.

The bonus scheme is reportedly tied to cash flow and share price and will pay out in full. Mr Livingston will receive 2.13 million shares at last week’s closing price of 226p.

Meanwhile, his executive colleagues, head of retail Gavin Paterson and Tony Chanmugam, BT’s finance director, should receive windfalls of £2.4m and £2.2m respectively.

The payments are likely to fan the flames of the boardroom pay debate, which has continued to rage in 2012 with banking chiefs being at the centre of public outrage.

Prime Minister David Cameron earlier this year vowed to tackle “crony capitalism” with a series of measures designed to control spiralling pay and bonuses among executives.

Business Secretary Vince Cable later unveiled the proposals, which include improved transparency over what people were paid while voting rules would be changed so investors could challenge their boards more vociferously and hold them to account.

Mr Livingston’s £5m award will be paid in addition to his salary and annual bonuses, which in the last year saw him pick up £3.8m in shares, cash and perks.