Post by Teddy Bear on Sept 10, 2013 21:12:06 GMT
Mark Thompson says that the reason he gave his mate Mark Byford £949,000 as a pay-off was to 'keep him focussed. The £500,000 that he would have been due, which is still insanely excessive for these clowns, was not enough.
Apparently Lucy Adams, the woman on a £320,000 salary, who decided it was 'time to move on' from the BBC after only 5 years, was deemed to be a liar by MP Margaret Hodge, staff at the BBC cheered.
Shows just how popular she is, among even her co-workers.
Apparently Lucy Adams, the woman on a £320,000 salary, who decided it was 'time to move on' from the BBC after only 5 years, was deemed to be a liar by MP Margaret Hodge, staff at the BBC cheered.
Shows just how popular she is, among even her co-workers.
The BBC's £1.6m not-so-magnificent seven: Shame of the corporation's highly-paid top brass who blamed each for scandal of using taxpayers' money to pay off executives
By Sam Greenhill and Matt Chorley
Between them they earned £1.6million-a-year from the BBC and yet not one could help MPs get to the truth about who signed off huge pay-outs to senior managers.
The not-so magnificent seven, including ex-Director-General Mark Thompson BBC Trust chairman Lord Patten squabbled and contradicted each other during a three-hour grilling in Parliament.
Cheers even rang out in the BBC newsroom yesterday as the corporation’s personnel chief Lucy Adams was branded a liar by MPs.
Miss Adams protested the verdict on her was unfair, but committee chairman Margaret Hodge declared: ‘You’re developing a habit of changing your evidence.’
Miss Adams, with her glasses perched on her head in what critics dubbed an ‘Ab Fab’ look - was accused of completely contradicting herself.
At one point, Mrs Hodge told her: ‘I’m not having any more lies this afternoon.’
This outburst apparently sparked a wave of disloyal jubilation within the Corporation as staff watched the exchange on live television.
The BBC’s own media correspondent, the respected Nick Higham, tweeted: ‘There was an audible cheer in the BBC newsroom when Margaret Hodge accused BBC HR director Lucy Adams of lying to the PAC.’
Margaret Hodge warned the BBC bosses that she wanted no more lies
Lucy Adams insisted it was not fair to be accused of repeatedly changing her evidence to MPs
The under-fire Miss Adams has already announced she is quitting the BBC after weeks of criticism of her role in signing off lucrative severance payments to senior managers.
She was reduced to a stuttering apology yesterday when the MPs took her task for admitting she had made a mistake in her previous evidence to the committee on July 10.
On that date, she had claimed to have no knowledge of a crucial email about Mark Byford’s £1million payoff.
But earlier this week, she admitted to having helped write it.
Yesterday she apologised to the committee and said she ‘immediately’ clarified the issue, but then admitted not doing so until September 2.
Mrs Hodge said this was a ‘very funny interpretation’ of ‘immediate’. Another MP said Miss Adams’ evidence should be taken with ‘a pinch of salt’.
The HR chief was accused of treating licence payers’ money as ‘sweetners’ to lavish on departing staff more money than they were entitled to.
At first, Miss Adams suggested she would never have used such a ‘strange’ word, but MP Stephen Barclay told her she had done so in an email, and said: ‘I find it very odd that the head of HR is saying “use the licence payers money as sweetners”.’
The Daily Mail has seen the leaked email in question, in which Miss Adams asks a colleague in HR: ‘What would the typical redundancy payment be so I can get a sense of the scale of this sweetner?’
In the committee, she said the BBC always tried to ‘manage people out the door’, taking into account the broadcaster’s ‘duty of care’.
She said the payment was part of a plan to cut numbers of senior staff without causing too much disruption - leading Mrs Hodge to tell her: ‘This attitude that the top cadre of people at the BBC faced greater difficulty when they faced redundancy rather than a receptionist or someone lower down is offensive, just offensive.’
While Miss Adams floundered, the bitter BBC civil war deepened as Mark Thompson, Lord Patten other serving and former executives sought to shift the blame over who knew about over-generous pay-offs to managers.
Also called to give evidence were Marcus Agius, the former chairman of the BBC Executive Board Remuneration Committee, BBC director Nicholas Kroll, BBC Trustee Anthony Fry and former BBC Trust chairman Sir Michael Lyons.
Between them the seven had BBC salaries worth a total of £1.6million.
Some claimed the 'eye-watering' pay-offs were part of a culture of extravagance at the Corporation while others insisted they presented 'value for money'.
During almost three hours of furious questioning in Parliament, former Director-General Mr Thompson and BBC Trust Lord Patten repeatedly contradicted each other, notably over a £1million settlement for ex-deputy Director-General Mark Byford.
Mr Thompson insisted he told the BBC Trust about the details of the pay-offs.
But sitting just feet away, BBC Trust chairman Lord Patten hit back, saying he was repeatedly told the huge deal for Mr Byford was 'contractual' and 'standard'.
As the Public Accounts Committee struggled to get to the bottom of the utter mess at the Corporation, Tory MP Chris Heaton-Harris said the saga was 'the most bizarre game of whack-a-mole I've ever seen in my life where you hit something down and it throws up another load of questions'.
To the astonishment of MPs on the powerful PAC, BBC bosses repeatedly claimed the £949,000 paid to Mr Byford in a 2010 deal represented ‘value for money’.
With no-one emerging victorious and the BBC's reputation suffering another hammering, the executives will be braced for a damning report from MPs.
Mr Thompson denied 'losing the plot' in agreeing the over-generous deals, but the row now threatens the continued existence of the BBC Trust itself.
Ms Hodge said under Mr Byford's contract he could have been paid off with £500,000.
She said: 'Why was half a million pounds, which to most people is mega bucks, why was that not enough?'
But Mr Thompson said it was part of getting the ‘complete pay bill down’ and suggested he would sign off the same deal again because it represented ‘value for money’.
'Why was half a million pounds, which to most people is mega bucks, why was that not enough?'
PAC chairman Margaret Hodge
Defiantly he declared: ‘I do not think we lost the plot.’ He said he had achieved a lot to cut the number of managers and reduce the pay bill.
He denied that BBC rules on payouts were 'lax' but conceded: 'Not all of the paperwork was done perfectly.'
Bizarrely Mr Thompson said the pay-off to his friend Mr Byford was needed to make sure he remained 'focused' on his job and not be distracted.
Mr Thompson told the committee that in his view Mr Byford's severance package represented 'value for money' and he explained that he had been under 'ferocious pressure' from the Trust to make savings.
Ex-Director-General Mark Thompson claimed his friend and deputy Mark Byford needed to be paid £949,000 to remain 'focused' on his job at the BBC.
MPs demanded to know why the huge sum was agreed, when contractually Mr Byford was only entitled to £500,000.
Mr Thompson denied there was any 'favouritism' in his decision to agree the deal.
Mr Thompson told the committee that in his view Mr Byford's severance package represented 'value for money' and he explained that he had been under 'ferocious pressure' from the Trust to make savings.
As part of the extraordinary deal, it was decided in October 2010 that Mr Byford would not be told formally that he was being made redundant until April the following year, allowing him to continue drawing on his salary.
Mr Thompson said the huge sum was needed because the BBC wanted Mr Byford to be 'fully focused' on his work during his last months in the job and not 'worried about his future'.
But former Trust chairman Sir Michael Lyons agreed with the MPs that payments like Mr Byford's 'look eye-watering' and he warned the Trust had been 'damaged' but the crisis.
Lord Patten said he had been repeatedly told the £949,000 deal for Mark Byford to leave the BBC was 'contractual' and 'standard'.
The BBC Trust chairman told the committee: 'I am in a slightly difficult position because I became chairman of the Trust six months after the Byford payment.
'I'm accused of having misled the committee on something that I never knew and couldn't have been expected to know.'
He said he had been through his induction pack from May 2011 and subsequent briefings, and there was no mention of the controversial severance payments.
One briefing ahead of a press conference stated: 'These were contractual payments which were essential in order to slim down the executive board.'
Lord Patten complained that it is 'Mark's contention' that he should somehow have deduced that the payment to Mr Byford was in excess of his contractual minimum.
He blamed a 'cultural issue' for the slate of payouts at the Corporation which 'we do have to recognise and apologise for and deal with very robustly'.
He said one of his first jobs was a meeting to discuss executive pay where he made 'a very simple point that the best cultural director in the world, Neil MacGregor, got £180,000 a year for running the British Museum. How many people at the BBC get paid more than that and how can we justify that?'.
Lord Patten cast doubt on a proposal that communications watchdog Ofcom should regulate the corporation, saying: 'I can't imagine handing the regulatory power to Ofcom and Ofcom wanting to be involved in remuneration.'
Peter Fincham, the former BBC1 controller walked away in 2007 with £500,000 because the Corporation could not sack him, it has emerged.
He resigned over the so-called Crowngate scandal in which he wrongly told the Press at a screening that the Queen walked out of a photoshoot featured in a royal documentary ‘in a huff’.
It later emerged that a promotional trailer for the programme had been misleadingly edited and that his account was untrue.
Mark Thompson said there had been an ‘editorial disaster’ which involved many people both insides the BBC and at the independent production company which made the programme.
But he added: ‘I felt it would be appropriate for Peter to go. The clear advice however was we didn’t have grounds for dismissal.
‘We decided to go for a consensual termination. I absolutely remember briefing the chairman [of the BBC Trust]. Not on every detail but we were going through a difficult negotiation, a lawyer-to-lawyer negotiation’.
- Seven BBC bosses with salaries worth a total of £1.6million grilled by MPs
- Committee struggling to get to the bottom of over-generous pay-offs
- Blame game rumbles on with all sides insisting they are not at fault
- MP Margaret Hodge accused Lucy Adams of changing her evidence
- At one point Mrs Hodge said: 'I'm not having any more lies this afternoon'.
- BBC's media correspondent tweeted: 'There was an audible cheer'
By Sam Greenhill and Matt Chorley
Between them they earned £1.6million-a-year from the BBC and yet not one could help MPs get to the truth about who signed off huge pay-outs to senior managers.
The not-so magnificent seven, including ex-Director-General Mark Thompson BBC Trust chairman Lord Patten squabbled and contradicted each other during a three-hour grilling in Parliament.
Cheers even rang out in the BBC newsroom yesterday as the corporation’s personnel chief Lucy Adams was branded a liar by MPs.
Miss Adams protested the verdict on her was unfair, but committee chairman Margaret Hodge declared: ‘You’re developing a habit of changing your evidence.’
Miss Adams, with her glasses perched on her head in what critics dubbed an ‘Ab Fab’ look - was accused of completely contradicting herself.
At one point, Mrs Hodge told her: ‘I’m not having any more lies this afternoon.’
This outburst apparently sparked a wave of disloyal jubilation within the Corporation as staff watched the exchange on live television.
The BBC’s own media correspondent, the respected Nick Higham, tweeted: ‘There was an audible cheer in the BBC newsroom when Margaret Hodge accused BBC HR director Lucy Adams of lying to the PAC.’
Margaret Hodge warned the BBC bosses that she wanted no more lies
Lucy Adams insisted it was not fair to be accused of repeatedly changing her evidence to MPs
The under-fire Miss Adams has already announced she is quitting the BBC after weeks of criticism of her role in signing off lucrative severance payments to senior managers.
She was reduced to a stuttering apology yesterday when the MPs took her task for admitting she had made a mistake in her previous evidence to the committee on July 10.
On that date, she had claimed to have no knowledge of a crucial email about Mark Byford’s £1million payoff.
But earlier this week, she admitted to having helped write it.
Yesterday she apologised to the committee and said she ‘immediately’ clarified the issue, but then admitted not doing so until September 2.
Mrs Hodge said this was a ‘very funny interpretation’ of ‘immediate’. Another MP said Miss Adams’ evidence should be taken with ‘a pinch of salt’.
The HR chief was accused of treating licence payers’ money as ‘sweetners’ to lavish on departing staff more money than they were entitled to.
At first, Miss Adams suggested she would never have used such a ‘strange’ word, but MP Stephen Barclay told her she had done so in an email, and said: ‘I find it very odd that the head of HR is saying “use the licence payers money as sweetners”.’
The Daily Mail has seen the leaked email in question, in which Miss Adams asks a colleague in HR: ‘What would the typical redundancy payment be so I can get a sense of the scale of this sweetner?’
In the committee, she said the BBC always tried to ‘manage people out the door’, taking into account the broadcaster’s ‘duty of care’.
She said the payment was part of a plan to cut numbers of senior staff without causing too much disruption - leading Mrs Hodge to tell her: ‘This attitude that the top cadre of people at the BBC faced greater difficulty when they faced redundancy rather than a receptionist or someone lower down is offensive, just offensive.’
CRISIS EXPOSES INABILITY OF BBC TRUST TO PROTECT LICENCE FEE
The utter confusion over who knew what about the payouts has exposed major failures in the ability of the BBC Trust to hold senior executives to account.
Trust chairman Lord Patten pleaded with MPs for more time to prove that the governance system set up by the last Labour government could work.
But PAC chairman Margaret Hodge said: 'We all around the table feel it's broke.'
Downing Street played down reports that ministers were preparing to scrap the Trust.
Lord Patten also cast doubt on a proposal that communications watchdog Ofcom should regulate the corporation, saying: 'I can't imagine handing the regulatory power to Ofcom and Ofcom wanting to be involved in remuneration.'
While Miss Adams floundered, the bitter BBC civil war deepened as Mark Thompson, Lord Patten other serving and former executives sought to shift the blame over who knew about over-generous pay-offs to managers.
Also called to give evidence were Marcus Agius, the former chairman of the BBC Executive Board Remuneration Committee, BBC director Nicholas Kroll, BBC Trustee Anthony Fry and former BBC Trust chairman Sir Michael Lyons.
Between them the seven had BBC salaries worth a total of £1.6million.
Some claimed the 'eye-watering' pay-offs were part of a culture of extravagance at the Corporation while others insisted they presented 'value for money'.
During almost three hours of furious questioning in Parliament, former Director-General Mr Thompson and BBC Trust Lord Patten repeatedly contradicted each other, notably over a £1million settlement for ex-deputy Director-General Mark Byford.
Mr Thompson insisted he told the BBC Trust about the details of the pay-offs.
But sitting just feet away, BBC Trust chairman Lord Patten hit back, saying he was repeatedly told the huge deal for Mr Byford was 'contractual' and 'standard'.
As the Public Accounts Committee struggled to get to the bottom of the utter mess at the Corporation, Tory MP Chris Heaton-Harris said the saga was 'the most bizarre game of whack-a-mole I've ever seen in my life where you hit something down and it throws up another load of questions'.
To the astonishment of MPs on the powerful PAC, BBC bosses repeatedly claimed the £949,000 paid to Mr Byford in a 2010 deal represented ‘value for money’.
With no-one emerging victorious and the BBC's reputation suffering another hammering, the executives will be braced for a damning report from MPs.
Mr Thompson denied 'losing the plot' in agreeing the over-generous deals, but the row now threatens the continued existence of the BBC Trust itself.
Ms Hodge said under Mr Byford's contract he could have been paid off with £500,000.
She said: 'Why was half a million pounds, which to most people is mega bucks, why was that not enough?'
But Mr Thompson said it was part of getting the ‘complete pay bill down’ and suggested he would sign off the same deal again because it represented ‘value for money’.
'Why was half a million pounds, which to most people is mega bucks, why was that not enough?'
PAC chairman Margaret Hodge
Defiantly he declared: ‘I do not think we lost the plot.’ He said he had achieved a lot to cut the number of managers and reduce the pay bill.
He denied that BBC rules on payouts were 'lax' but conceded: 'Not all of the paperwork was done perfectly.'
Bizarrely Mr Thompson said the pay-off to his friend Mr Byford was needed to make sure he remained 'focused' on his job and not be distracted.
Mr Thompson told the committee that in his view Mr Byford's severance package represented 'value for money' and he explained that he had been under 'ferocious pressure' from the Trust to make savings.
Ex-Director-General Mark Thompson claimed his friend and deputy Mark Byford needed to be paid £949,000 to remain 'focused' on his job at the BBC.
MPs demanded to know why the huge sum was agreed, when contractually Mr Byford was only entitled to £500,000.
Mr Thompson denied there was any 'favouritism' in his decision to agree the deal.
Mr Thompson told the committee that in his view Mr Byford's severance package represented 'value for money' and he explained that he had been under 'ferocious pressure' from the Trust to make savings.
As part of the extraordinary deal, it was decided in October 2010 that Mr Byford would not be told formally that he was being made redundant until April the following year, allowing him to continue drawing on his salary.
Mr Thompson said the huge sum was needed because the BBC wanted Mr Byford to be 'fully focused' on his work during his last months in the job and not 'worried about his future'.
But former Trust chairman Sir Michael Lyons agreed with the MPs that payments like Mr Byford's 'look eye-watering' and he warned the Trust had been 'damaged' but the crisis.
Lord Patten said he had been repeatedly told the £949,000 deal for Mark Byford to leave the BBC was 'contractual' and 'standard'.
The BBC Trust chairman told the committee: 'I am in a slightly difficult position because I became chairman of the Trust six months after the Byford payment.
'I'm accused of having misled the committee on something that I never knew and couldn't have been expected to know.'
He said he had been through his induction pack from May 2011 and subsequent briefings, and there was no mention of the controversial severance payments.
One briefing ahead of a press conference stated: 'These were contractual payments which were essential in order to slim down the executive board.'
Lord Patten complained that it is 'Mark's contention' that he should somehow have deduced that the payment to Mr Byford was in excess of his contractual minimum.
He blamed a 'cultural issue' for the slate of payouts at the Corporation which 'we do have to recognise and apologise for and deal with very robustly'.
He said one of his first jobs was a meeting to discuss executive pay where he made 'a very simple point that the best cultural director in the world, Neil MacGregor, got £180,000 a year for running the British Museum. How many people at the BBC get paid more than that and how can we justify that?'.
Lord Patten cast doubt on a proposal that communications watchdog Ofcom should regulate the corporation, saying: 'I can't imagine handing the regulatory power to Ofcom and Ofcom wanting to be involved in remuneration.'
Peter Fincham, the former BBC1 controller walked away in 2007 with £500,000 because the Corporation could not sack him, it has emerged.
He resigned over the so-called Crowngate scandal in which he wrongly told the Press at a screening that the Queen walked out of a photoshoot featured in a royal documentary ‘in a huff’.
It later emerged that a promotional trailer for the programme had been misleadingly edited and that his account was untrue.
Mark Thompson said there had been an ‘editorial disaster’ which involved many people both insides the BBC and at the independent production company which made the programme.
But he added: ‘I felt it would be appropriate for Peter to go. The clear advice however was we didn’t have grounds for dismissal.
‘We decided to go for a consensual termination. I absolutely remember briefing the chairman [of the BBC Trust]. Not on every detail but we were going through a difficult negotiation, a lawyer-to-lawyer negotiation’.