If you don’t have time to read the full NAO report before today’s Public Accounts Committee hearing, see below for some key points:
The BBC has not named people who received a number of massive payments
Case Study 1 – a senior manager – total severance cost £866,288
The second largest severance payment in the report was paid to an unnamed manager. This was more than the severance payments received by named executives.
Case Study 4 – a senior manager – total severance cost £376,000
This is comparable to the severance payment received by Sharon Baylay (£394,638).
BBC has named executive directors who have received severance payments: George Entwistle, Caroline Thompson, John Smith (Chief Executive of BBC Worldwide), Mark Byford, Sharon Baylay.
The National Audit Office (NAO) found numerous cases where people received more money than they were entitled to
NAO Report – Key Finding 10 – ‘In 14 of the 60 cases we reviewed, the BBC paid senior managers more salary in lieu of notice than would be provided by their contractual entitlement, costing licence fee payers at least £1 million’
More than 150 senior managers received severance payments. Therefore, the total cost is more likely to be around £2.5 million, if you include the full number of 150 senior managers paid off, rather than the £1 million figure from the NAO sample of 60 payments. The current number of senior managers is 436.
The NAO found unexplained discretionary payments including for cars and private healthcare
Someone received £49,000 for training and information technology equipment. It is unclear why someone should receive training and equipment as it cannot be part of its contractual entitlement.
The BBC agreed to buy at least £60,000 of consultancy services from a departing manager over two years, at a daily rate of £1,000. Why is the BBC continuing to employ someone it has paid to leave?
Someone who was only employed at the BBC for seven months received a payoff including a further six months of: car allowance (worth £3,900); private healthcare (costing the BBC £1,200); pension contributions; and salary in lieu of notice (£95,000). Their payoff after seven months work was more than £100,000, plus an unspecified pension contribution.