Deadline: BBC Plans To Abolish Automatic Pay Rises For Top Earners, Including On-Screen Stars

Story from Deadline:

The BBC wants to overhaul how it awards salary rises to its highest-paid employees and presenters, Deadline understands.

Sources said the British broadcaster wants to stop top earners from receiving automatic annual pay increases and instead hand them raises based on their performance.

The BBC wants to make the change as it grapples with a £90M gap in its finances following its 2023 license fee settlement, but is mindful of squeezing pay in a way that makes it less attractive to new talent.

Some BBC executives and presenters already receive performance-related salary increases, but the corporation wants to move so-called “Band F” staffers (those who earn between £64,103 and £117,523) into the same bracket.

The BBC attempted to make the change as part of 2024 pay talks with Bectu and the National Union of Journalists, but the unions rejected the plan and want more clarity on how performance will be measured.

“It’s quite a massive proposal,” said a source familiar with the talks. “The unions have misgivings about taking people out of collective pay bargaining.”

As part of the talks, the BBC agreed a minimum pay rise of 3% for the majority of employees, which will take effect in August. UK inflation currently stands at 3.4% and the government wants to drive it down further.

The BBC will revisit the performance-related pay proposal next year, with further conversations set to take place with union officials in the coming months.

The change could potentially impact more than 1,000 employees. The BBC has 124 senior leaders who earn between £50,000 and £150,000 a year. Some 1,163 on-screen stars take home between £40,000 and £150,000.

BBC executive leaders and presenters who earn more than £178,000 are already exempt from automatic pay increases. This includes Director General Tim Davie.

A BBC spokesperson said: “We aim to strike a balance between fairness, attracting and retaining staff who deliver world-class content and providing value to audiences. We want to ensure fair pay progression across the BBC, both now and in the future.”

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