Boss pocketed £2.85m in last year with BT

The boss who presided over disastrous losses at BT pocketed almost £3m (€3.44m) in his last year with the telecoms giant, it was disclosed today.

Francois Barrault headed BT’s division handling telecoms networks for major organisations – ranging from consumer goods giant Unilever to the NHS – before stepping down last October.

Mr Barrault received a total of £2.85m (€3.27m), including a £1.6m (€1.83m) termination payment, according to BT’s annual report.

BT has been forced to write off more than £2bn (€2.3bn) in over-optimistic assumptions on contracts and restructuring charges at the global services arm, after an “unacceptable” performance.

The company cut 15,000 jobs last year and is expected to axe a further 15,000 this year – 10% of its workforce – as it looks to cut costs.

Mr Barrault’s package is likely to spark fury among BT shareholders who saw dividend payments slashed due to the losses, as well as the cost of meeting the telecoms giant’s huge pension deficit.

The firm said: “We are disappointed to make the payment to Francois but BT honours its legal and contractual obligations.”

Mr Barrault also gained £573,000 (€657,000) in salary and pension contributions up until the end of November when he left, and £684,000 (€785,000) in other benefits – including a retention payout and allowances for housing, school fees and social clubs.

But he has foregone share options over about 1.5 million BT shares in the firm’s various incentive schemes under the terms of his departure. He joined the company in 2004, becoming a board member in 2007.