Thursday, May 28, 2009

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BT freezes salaries of all employees

BT Group, the UK’s largest phone company, shelved planned pay increases for executive directors as it froze salaries for all employees. The company also won’t pay any bonuses related to financial targets as the goals were missed, BT said in an annual report on its web site on Wednesday. Executive directors can still get some bonuses for improvements in customer service and on environmental and social targets, it said.

BT will make some “discretionary recognition payments” to some employees below board level, it said, adding that there won’t be any bonus payments in the global services unit.

The company on May 14 lowered its dividend after posting a fourth-quarter loss on costs to overhaul the global services division and said a further 15,000 jobs will be cut this year. It predicted today that the current economic conditions will “continue for some time.”

Bonuses won’t be out in paid in cash. Some executive directors will convert bonuses into shares while others have asked to receive no bonus at all this year.

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