Disgraced BT Global Services boss’ ‘payment for failure’ criticised

The revelation that Francois Barrault, the former CEO of BT Global Services who resigned in November 2008, received £2.9 million in 2008, including a £1.6 million ‘golden parachute’ has been met with severe criticism.

Barrault left the company after his division’s dire performance gravely impacted the group’s profitability, prompting shareholders and union leaders to describe his remuneration as “payment for failure”.

That Barrault is to receive so much for his time at BT Global Services is especially galling as BT has had to cut 15,000 jobs, mainly as a result of that division’s mismanagement, and expects to do the same again in the coming year.

Since Barrault’s departure, an internal audit of BT Global Services’ customer engagements has led to the decision to write-off £300 million-worth of unprofitable contracts.

BT itself said in a statement that it was “disappointed” to be making the pay-out, but that it was contractually obliged to do so.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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