BBC Boss Pay-Offs £1.4m More Than Needed

The BBC paid senior managers £1.4m more than their contracts demanded in pay-offs over a three year period, the National Audit Office (NAO) has said.

The NAO examined a further 90 severance payments made to corporation bosses after its initial study of 60 cases earlier this year, which showed some staff were paid more than they were entitled to.

The new report states: "Across all 150 severance payments to senior managers in the three years to December 2012, the BBC paid more salary in lieu of notice than it was contractually obliged to in 22 cases, at a total cost of £1.4m.

The NAO said that in 18 of the additional 90 cases, severance deals had been agreed "before the supporting business cases had been through the relevant scrutiny and approval process".

BBC director-general Tony Hall is reforming severance pay arrangements

It said: "In one case, approval to pay severance of £141,000 was not provided until after the payment was made."

The BBC also paid £687,333 in redundancy to executive Jana Bennett, a former head of television at the corporation, after she left a new position at its commercial arm, BBC Worldwide, before it "reversed its decision and recovered the money".

The NAO report says the review confirms the conclusion set out in the earlier report, "namely that weak governance arrangements led to payments that exceeded contractual entitlements, provided poor value for money and put public trust at risk".

It also highlighted the case of a senior manager who received a pay-off of £179,200, but then returned to the BBC for 20 days and was paid £9,650.

The BBC has also published a separate report by auditors KPMG examining severance payments from July 2006 to December 2009.

BBC director-general Tony Hall said: "Reforming severance pay arrangements and addressing these problems of the past have been a priority for me from day one as director-general.

"I commissioned today's KPMG report to ensure that we can get everything out in the open and help bring this difficult chapter to a close.

"Both these reports underline what we already knew - approvals, record keeping and oversight were poor. Although as a result of these deals the BBC delivered savings of £37m a year in management costs, it did it in the wrong way."

The KPMG report showed 176 managers left the corporation in the period examined with an average payment of £130,068.

Former BBC boss Mark Thompson is due before MPs on Monday

Among the senior executives who left in that period was former BBC1 boss Peter Fincham who reportedly got a £500,000 pay-off when he left the corporation in the wake of a scandal sparked by misleading footage of the Queen.

Mr Fincham, who is now director of television at ITV, quit in 2007 after an independent inquiry revealed a catalogue of "misjudgments, poor practice and ineffective systems" at the corporation.

Lord Hall has already announced a cap on severance pay of £150,000.

Rob Wilson, Conservative MP for Reading East, said former director-general Mark Thompson would "have to answer" for the "unnecessary and excessive golden goodbyes" when he appears before the Public Accounts Committee on Monday.

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