It is very hard to extoll the virtues of capitalism, when some executives appear to take it to unusual lengths. BT’S CEO Gavin Patterson is in my humble opinion such a case. He has just been granted a pay increase, which I have no doubt is under the terms of his contract – up I believe about 72% to include a £1.3 million bonus and a £300k contribution to his pension fund. This contribution to his pension fund is against a background of BT’S £11 billion pension blackhole.
Since Mr Patterson took over from Lord Ian Livingston as CEO in September 2013, BT’S share price is down 40% from 340p to 201p and has all but been clattered since November 2015 (499P), Why? Too much commitment to BT Sport with an obsession to usurp Sky. BT’S Broadband service in many parts of the UK seems poor. With the likes of poor Mrs Higginbottom’s kids in the valley near Hawes in North Yorkshire unable to receive a quality service as is the case in many other parts of the country, it is hard to accept this pay rise as being fair. Broadband should be BT’S number one priority. Little else matters. Surely the 5th largest economy in the world is entitled to something better than a 3rd world service?
To add to this miscellany of issues, the Italian scandal that may cost £500m and the fact that BT has hosed out 13000 jobs over the next few years these emoluments, this pay award does not make great reading. Surely to regain the respect of the public, Mr Patterson would be well advised to waive these bonuses for the time being. Timing is everything! He is clearly a very rich man and is hardly on the bread line. I hope that he will have a re-think and I would also like to know what the new chairman Jan du Plessis and the remuneration committee were thinking of. Says now’t for the optics and credibility of big business.