BT options plan called 'excessive'
BT has come under fire from a leading consultancy over its proposed
share option scheme, which could result in senior executives receiving packages
worth several times their annual salary.
Manifest, a proxy voting group, has produced a report describing
the complex three tier scheme as "somewhat excessive". This has been circulated
among Manifest's clients, who include several major BT shareholders.
The shareholders will vote on whether to adopt the scheme at an annual
meeting in Manchester on July 12.
Sarah Wilson, Manifest's managing director, said: "Some
executives could receive up to eight times their salary in share options. BT
has to remember that this is not their money, it is shareholders money."
Manifest is particularly concerned by the share option scheme
put in place for internet executives. BT has not yet decided whether the scheme
will be linked to performance, leading to accusations that it could award
executives who fail.
"In the wake of the dotcom failures, investors are beginning to turn
around and say that internet divisions must have performance targets in place."
said Ms Wilson.
A BT spokesman said yesterday that the scheme will not award executives
with eight times their salary because nobody will be eligible for all three
tiers. "It's a basic fact of life that very senior staff here could leave and
pick up huge sums elsewhere," he said. "We have to do something to counteract
that."
BT shares closed down 10 at 949p.
Rosie Murray-West, Daily Telegraph
17 June, 2000
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