BBC Boss 'Shocked' Over Bumper Pay-Offs

The most senior figures at the BBC appeared before MPs to answer questions about huge pay-offs to outgoing managers.

BBC bosses have been grilled by MPs over how senior staff were given hefty pay-offs that often breached the corporation's own guidelines.

Director-general Tony Hall and chairman of the BBC Trust Lord Patten appeared before the Public Accounts Committee, along with human resources director Lucy Adams and trust member Anthony Fry.

The session in the House of Commons came after a National Audit Office (NAO) report showed huge payments, of hundreds of thousands of pounds in some cases, were made even though executives were not always entitled to the money.

Lord Patten began by telling the group of cross-party MPs that it was "a question of shock and dismay for us" when it emerged that staff had been paid more than they were contractually owed in some cases.

George Entwistle was paid £450,000 for being in the top job for 54 days

Asked why he did not know some pay-offs had gone beyond what was contractually needed, Lord Patten appeared to suggest former director-general Mark Thompson should be called to give evidence.

He told the committee: "If you call a previous director general of the BBC I will be as interested as you are why we didn't know."

Speaking about Mr Thompson's eventual successor George Entwistle, who stood down after a few weeks in the job amid the Jimmy Savile sex scandal, Lord Patten said his pay-off of £450,000 was necessary to prevent a potentially larger bill if they had got bogged down in legal argument.

He said: "We would have fetched up paying more than we in fact had to pay him."

The pay-offs to Mark Byford and Caroline Thompson have been criticised

Lord Patten admitted Mr Entwistle was paid for an extra 20 days work for the BBC to help manage the transition to a new director-general but "as it happened he wasn't required to do anything".

Lord Patten also revealed that the BBC Trust has been pressing for an overall pay reduction since 2009.
He suggested to the MPs that some of the payments had been approved to "get people out of the door" after the BBC decided to cut the number of senior managers it employed.

He agreed with committee member Austin Mitchell MP that the size of some of the payments had discredited the licence fee and said: "It's not only the licence fee payer that has been shocked by what's happened, it's people who work for the BBC".

Roly Keating handed back his pay-off

According to the NAO in the three years up to last December, the BBC spent £25m on severance payments for 150 high-ranking staff.

And since 2005, the corporation has made payments totaling £60m to more than 400 senior managers.
Among the pay-offs criticised was one to former chief operating officer Caroline Thomson, who left last year with £670,000 - more than twice her salary.

And former deputy director-general Mark Byford was paid £949,000 when he left two years ago.
But the former BBC2 controller, Roly Keating, who was given a £375,000 pay-off, returned the money after learning it had not been properly authorised.

Lord Patten says he was shocked at the NAO's findings

Ms Adams, who is paid a salary of £320,000, said Mr Byford had an expectation of a payment in lieu of notice of 12 months because it had become "custom and practice" at the BBC.

She said she raised the possibility of a cap on redundancy payments in 2011, adding: "I was well aware this was unsustainable".

Mr Hall said the issue was not just with the human resources department, but a broader problem with the culture at the BBC and "the amount of control at the centre over what was going on was simply not good enough".

He added that he was working to make the BBC a "simpler" organisation and it was "over-complex, over-layered".

Mr Hall said: "Culturally I think we'd lost the plot, we lost the way", but added he had faith in Ms Adams to continue in her role.

Mr Fry told the committee that some BBC staff were "out to lunch" in regard to how much they expected senior executives to be paid, and some people had got "unreasonable" salaries and pay-offs.

He said members of the trust, which is the governing body of the BBC, were not always included in all decision making.

There were times when "people like me were asked in not particularly pleasant words to get back into our box," he added.

Lord Patten said the BBC would publish the full cost of the Pollard review into a dropped Newsnight investigation which featured allegations of sexual abuse by the late TV presenter Savile next Tuesday.