STRICTLY CONFIDENTIAL REMUNERATION COMMITTEE Title: Action: Meeting: Purpose: To approve the remuneration for Lucy Adams who,

subject to the approval of the Nominations Committee, and Executive Board, will be appointed to the position of Director, BBC People with effect from 1 June 2009, the exact date to be confirmed. Subject to the approval of the Remuneration Committee, a formal offer of appointment will be issued to Lucy Adams on the basis of her assuming her new role. Appointment of Director, BBC People FOR DECISION 25 February 2009 RC(09) 2

Recommendation: The Remuneration Committee is asked to approve the remuneration of Lucy Adams on her appointment to Director, BBC People at a basic annual salary of 320,000, effective June 2009.

Name Author: Sponsor: Robert Johnston Mark Thompson Date Onward approval path: 25 Feb 09 27 Feb 09

Title Reward Director Director-General Board or Committee Nominations Committee Executive Board

STRICTLY CONFIDENTIAL APPROVAL PATH TO DATE Board or Cttee Not applicable Date Summary of feedback on paper and resulting amendments

RC(09) 2

STRICTLY CONFIDENTIAL APPOINTMENT OF DIRECTOR, BBC PEOPLE 1. 1.1 Context

RC(09) 2

Following the resignation of Stephen Kelly from the role of Director, BBC People a search commenced for his replacement. The Zygos Partnership was appointed to complete the search and although four internal candidates put themselves forward, it was decided that none of them were ready for the role. Following the selection process the Nominations Committee is being asked to approve the appointment of Lucy Adams to the role of Director, BBC People with effect from June 2009. Current package Lucy is currently HR Director, Eversheds LLP where she is a partner. Her current package is as follows: [Withheld under section 40(2)]

2. 2.1

3. 3.1

Proposed package We are proposing a package as follows: Base Salary: 320,000, next review date 1 August 2010 Bonus: An annual bonus of up to 10% of base salary based on business and personal objectives (not payable in 2009) Pension: Invitation to participate in the Career Average Benefits of the BBC Pension Scheme (The Scheme) Pension Supplement: A pension supplement of 60,720 equivalent to 30% of earnings above The Scheme cap (currently 117,600), Life Assurance: Life Assurance up to four times base salary Personal Accident Insurance Cover: To a limit of 375,000 Medical Insurance and Health: Participation in the Companys medical insurance plan Car Allowance: 12,900 per annum Annual Leave: An annual leave entitlement of 27.5 days per annum plus a Corporation Day

4. 4.1

Rationale Although the total remuneration proposed is lower than the package Lucy can currently potentially earn, it has a higher level of guaranteed salary and lower element of variable pay. Lucy is attracted the scope of the BBC role and the fact that the appointment is on the Executive Board. In accordance with our remuneration policy, we have obtained benchmark market data from the Towers Perrin General Industries Survey, FTSE 100 companies (excluding 1

4.2

STRICTLY CONFIDENTIAL

RC(09) 2

Financial Services). We have compared the Director, BBC People role against HR Directors on the Main Board. The market data indicates that the median market rate for base pay is 355,000 and therefore a salary of 320,000 is below the market median. The current incumbent Stephen Kelly has a base salary of 331,500 and therefore the salary for Lucy Adams is being set below the current level. 4.3 Internally, a base salary of 320,000 would position Lucy as the second lowest paid member of the Executive Board. We believe this is appropriate as, though we are confident that she will quickly become a fully effective member of the Executive Board, we recognise that she will be developing into this position. The salaries of the other members of the Executive Board are set out below. Current Salaries for BBC Executive Board Pref Name Mark Jana John Peter Zarin Caroline Erik Tim Lucy Sharon 5. 5.1 Current Salary 474,500 414,500 400,000 375,000 351,750 335,000 330,000 325,000 320,000 310,000 Pension Supplement n/a 89,070 n/a 77,220 70,245 65,220 63,720 62,220 60,720 57,720

Surname Byford Bennett Smith Salmon Patel Thomson Huggers Davie Adams Baylay

Job Title Deputy Director General Director, BBC Vision Chief Operating Officer Director, BBC North Group Finance Director Chief Operating Officer Director, FM&T Director, Audio & Music Director, BBC People Director, MC&A

Recommendation The Remuneration Committee is asked to approve the remuneration of Lucy Adams on her appointment to Director, BBC People at a basic annual salary of 320,000, effective 1 June 2009 plus the other elements of the reward package as outlined above.