BT hands former boss Philip Jansen £3.7m final pay package | Personal Finance | Finance

BT has disclosed that it awarded its former chief, Philip Jansen, a hefty £3.7 million final pay package, despite the telecoms behemoth reporting lower profits and ramping up its cost-cutting measures.

Mr Jansen was succeeded by Allison Kirkby as BT’s CEO at the end of January, after a five-year stint at the helm of the company.

The company’s most recent annual report revealed that the ex-chief’s total remuneration surged by 25.8 percent to £3.72 million for the financial year ending March 31.

This increase occurred despite Mr Jansen receiving a reduced fixed pay down to £1.11 million from £1.32 million the previous year due to his departure from the company 10 months into the financial year.

His remuneration included a £917,000 salary, along with his pension allowance and benefits, which comprised £79,000 towards the cost of a car and personal driver.

The boost in his pay package was fuelled by a leap in his bonus payments, with total variable pay escalating to £2.6 million from £1.63 million the previous year.

This encompassed an annual cash bonus of £1.45 million and £1.15 million in shares through the company’s restricted share plan.

In contrast, his successor Ms Kirkby received £341,000 for the final two months of the financial year, including a £25,000 relocation allowance.

Upon her appointment, BT announced she would earn £1.1 million annually plus an annual bonus potentially worth double her salary, contingent on the company’s performance.

BT’s CFO Simon Lowth also saw a rise in his pay deal for the year, increasing to £2.69 million for the past year from £1.95 million the previous year.

Despite a 31% drop in pre-tax profits to £1.18 billion for the year to March, BT has announced pay rises. The telecoms giant also plans to cut costs by an additional £3 billion in the coming years.