BBC chiefs' bonuses 'suspended'

Bonuses for the 10 most senior BBC executives are to be suspended indefinitely, the chairman of the BBC Trust has said.

Writing in the Daily Telegraph, Sir Michael Lyons said some salaries could "appear too high" during the recession.

Executives had already agreed not to receive pay rises or bonuses this year.

Meanwhile, the culture secretary has said it is "self-defeating" of BBC managers to oppose plans to share the licence fee with other broadcasters.

The BBC said it would respond to the comments at a news conference on Tuesday.

The corporation is currently trying to cut its costs and save £1.7bn between now and 2013.

'Wage restraint'

Sir Michael's announcement came after widespread criticism of high salaries and expenses among BBC top brass.

According to the Telegraph, the Trust's annual report, to be published later, will show the 10 directors earned almost £5m in salary last year - 17% more than the year before.

Writing in the Telegraph, Sir Michael said: "I can reveal that we have already reached agreement that Executive Board bonus payments will be suspended until further notice and not reintroduced without the Trust's approval."

He said the Trust had "consistently emphasised the need for wage restraint", although he acknowledged that competitive salaries were needed to retain the best staff.

Sir Michael said: "We must, however, also ensure that we maintain the trust and confidence of those who pay for the BBC - the licence fee paying public.

"We have to be sensitive to the prevailing economic wind which currently can make the top BBC salaries appear too high."

Last July, Director General Mark Thompson defended the decision to award pay rises of up to £107,000 each for the BBC's executive directors.

He did, however, waive his own right to a bonus because of the "scale of disruption and uncertainty" facing his BBC colleagues.

'Feeling of despair'

Ben Bradshaw accused BBC bosses of showing poor leadership

But it is also facing new challenges to its funding after the government outlined proposals to allocate 3.5% of the licence fee to other broadcasters including ITV to fund the provision of regional news and children's programming.

Mr Thompson said "under no circumstances" would it be a good idea and Sir Michael said it would "damage BBC output".

But speaking to the Financial Times, Culture Secretary Ben Bradshaw said they had lost the confidence of many of their senior staff over the issue.

He said: "There is almost a feeling of despair among a lot of highly respected BBC professionals.

"I don't know why they have adopted this position. I don't think it's sensible. I think it is wrong-headed and ultimately self-defeating."