BBC's 'talent pay' slashed by £6m

%VIRTUAL-SkimlinksPromo%The BBC fell short of licence fee-payers' expectations with its hefty payments to some former staff, its governing body said today.

The BBC Trust said there had been successes, highlighting shows like Call The Midwife and Rev, but acting chairman Diane Coyle added: "There have also been some high-profile failures.

"The BBC's Digital Media Initiative project was closed at a cost of nearly £100 million.

"And there was the controversy surrounding past severance payments...

"Both of these episodes involved significant sums of public money and saw the BBC falling well short of what licence fee-payers expect."

Excessive payouts came under scrutiny last year when it emerged that deputy director-general Mark Byford left the BBC with a total payout of £949,000 and former chief operating officer Caroline Thomson was given £680,000.

George Entwistle took £470,000 when he resigned as director-general in the wake of the Jimmy Savile scandal after being in the role for just 54 days, with 150 managers between them receiving £25 million
in pay-offs.

The Commons Public Accounts Committee was critical of the payments in a report late last year, with the chairman saying the BBC had "put its reputation at risk".

Ms Coyle's comments came as the BBC published its annual report today, which also showed the amount paid to the broadcaster's top stars was slashed by more than £6 million last year.

The corporation had been heavily criticised for the amount it pays its top talent, with presenters including Jeremy Clarkson and Graham Norton reportedly among its biggest earners.

In its annual report for 2013/14, the BBC said talent pay was slashed by more than £6 million, bringing a 15% fall in its talent bill since 2009.

The number of senior managers was cut by 8% last year, while the number of top earners on salaries of more than £100,000 fell for the fourth consecutive year.

The BBC said it is "delivering on its commitments", with popular shows such as Sherlock and Happy Valley, despite an effective 26% reduction in funds available for BBC services over six years following a licence fee freeze and new commitments given to the BBC such as part-funding the superfast broadband roll-out.

BBC director-general Tony Hall is also pledging a 4% increase in spending on content and delivery over the next three years.

Last week BBC News announced plans to axe 415 posts to save £48 million a year by 2016/17. The cuts will be offset by around 195 new roles, meaning a net reduction of 220 jobs.

The BBC annual report shows that a total £3.62 million was made in severance payments to 22 senior management staff in 2013/14. That was down on the £5.06 million for 2012/13.

Severance payments to all staff, including senior managers, was £25.6 million in 2013/14 compared with £40.2 million in 2012/13.

The report also showed that "audience appreciation" has decreased for BBC1, BBC2, BBC3 and BBC4.