Thompson Addresses Accountability as BBC Reveals Exec Expenses

LONDON: In a speech in Manchester, the BBC’s director general, Mark Thompson, addressed the issues of accountability and disclosure, announcing his "intention to open up the BBC further," beginning with the release of the expenses of the pubcaster’s top executives.

Thompson delivered the speech, titled "Accountability In A Time of Change" at the Chartered Institute of Public Finance & Accountancy Annual Conference in Manchester. "Public expectations about openness, trustworthiness and every kind of value for money are becoming more trenchant, more insistent and more vocal than ever before," Thompson said, referencing the recent controversy over MPs expenses. "We hear the voices calling for greater accountability and transparency on program after program on our airwaves. But if you watch and listen to the BBC, let alone read the newspapers, you will realise that—more or less uniquely among the U.K.’s media players—the BBC often finds itself the subject of the call for greater accountability. When it comes to accountability, we are not just the reporters but the reported on."

Thompson noted last year’s decision by the BBC to regularly publish the expenses incurred by senior executives, and released a set of those figures today. "We have covered the debate about the case for reform and greater transparency within the Palace of Westminster very extensively on BBC programs and I believe that, certainly taking the output as a whole, we’ve done it fairly and proportionately. Nonetheless, it is quite reasonable for politicians and others to invite us to look searchingly into the mirror at our own practice when it comes to disclosure."

He continued: "In recent weeks, the BBC Trust has strongly encouraged us to look at whether we could—and should—go further in our practice of routine disclosure. This morning I want to tell you about our intention to open up the BBC further, in what I consider to be a major step change in the information that we disclosure to the public."

When it comes to executive salaries, Thompson said the BBC intends to publish "an exact breakdown of pay, by name, not just for executive directors as now, but for two other groups: first the top 50 earners in BBC management, and second the top decision-makers, those with the greatest responsibility both for spending public money and for overseeing the BBC’s services and operations." In addition, these executives expenses will be published each quarter.

Thompson also addressed the issue of payments of on-air talent. "The overwhelming majority of talent who work with us to help inform and entertain the public are paid pretty modestly. We issue around 250,000 artists’ contracts each year. The average value of a contract is less than £1,000. But it’s true that we do employ a small number of people who earn a great deal for what they do. The BBC Trust commissioned a report looking at the value-for-money the BBC delivers in its hiring and retention of talent, including top talent. This report, by Oliver & Ohlbaum, made some recommendations but concluded that in general we did have strong controls in place, did not overpay, indeed often were able to secure key talent at below market rates. After a period in which we have seen significant inflation in top talent pay, the market has turned and we have committed ourselves to reducing the amount we spend on top talent progressively over the next few years. On the ground, we are already finding that in many cases we can negotiate reductions when contracts come up for renewal."

The BBC will not, however, disclose individual talent fees, Thompson added. "We operate in an industry where confidentiality is the norm and in which, if the BBC was the only broadcaster forced to reveal these fees, there is a real danger that on-air talent would migrate to other broadcasters and independent producers, leaving the BBC and the public-service programming it produces, the poorer. Our experience suggests that disclosure of this kind is likely to lead, not to better value for money, but to fresh upward pressure on pay."

The pubcaster will disclose the total amount spent on talent each year, Thompson said.