BT chief executive tipped for £1m bonus

Communications Workers Union reacts badly to two per cent pay offer, while CEO could pocket bonus of more than £1m

Livingstone to pocket £1m as union gets two per cent pay offer

BT's chief executive Ian Livingston is to receive a bonus of more than £1m, according to a report in the Guardian today.

That news, combined with BT's financial year results of more than £1bn profit and savings of £1.7bn, has enraged the Communications Workers Union (CWU) whose annual meeting started yesterday in Bournemouth.

Livingston received a £343,000 bonus a year ago, and BT has cut more than 35,000 jobs in the past two years.

The CWU is to ballot its BT members on possible strike action. It launched the "Because we're worth more" campaign last week to drive home its claims for a five per cent pay rise.

BT has offered the CWU two per cent and unconsolidated non-pensionable lump sums based on achieving undisclosed targets in 2011, according to a videocast on the CWU's web site.

Speaking on the same videocast, National Executive Committee member Allan Eldred said: "All we want is our share in that recovery – no more, no less."

He added: "I hope that they'll wake up before we do this, but I suspect they won't until we deliver that yes vote."

Replying to CWU's comments BT said, "we're disappointed and surprised the CWU leadership has rejected the offer. It's more generous than those accepted by the union elsewhere, and we think their demand is unrealistic."

"We've offered a package that could see the lowest paid union members receive up to 5.4 per cent in pay and bonuses which compares very well with the rest of the market," explained BT, adding, "we hope the union review their position as this is our final offer.”