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BT’s CEO Loses Bonus as Chairman Sir Mike Rake Plans Departure

Monday, May 23rd, 2016 (8:16 am) - Score 1,576

The CEO of BT Group, Gavin Patterson, has lost out on a bonus worth £290,000 due to a rise in customer complaints, but don’t feel too bad for him as his pay for 2015 still increased to £5.4m from £4.6m in 2014. Meanwhile Chairman Sir Mike Rake has agreed to stay on until “at least” September 2017.

The telecoms giant has already acknowledged it’s customer service failings and have since promised to turn things around on several fronts. As well as facing stiffer quality of service regulation from Ofcom (Strategic Review), BT has also promised to hire 1,000 extra staff for customer care roles (here) and answer “more than” 80% of its customers’ calls in the United Kingdom by the end of 2016 (here).

A BT Spokesperson said:

“The company is determined to do better on service and has announced detailed plans to meet rising customer expectations in the coming year.”

Never the less BT Group’s independent board members have reportedly asked the operator’s long standing Chairman, Sir Mike Rake, to stay on in his position for a little longer because BT’s CEO is still considered to be “relatively new” (IBTimes).

The board has asked me — and I have agreed — to stay on as chairman until at least September 2017,” said Rake after picking up £706K for his four-day-a-week role this year. Rake is now on course to become BT’s longest-serving board member and he’s expected to hit the 10 year mark next year.

Patterson was only appointed to the role of CEO in 2013 and since then we’ve seen a bunch of big moves into the TV and Mobile space, not least via the launch of BT Sport and the EE merger. BT also looks set to dodge a regulatory bullet by avoiding the loss of Openreach to full independence, but this is still an on-going matter for closed door discussion.

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By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
25 Responses
  1. GNewton says:

    “The telecoms giant has already acknowledged it’s customer service failings”

    That would be a first step towards resolving this issue. It’s why users rated it as one of the worst companies in the UK, as is evident from most major review sites.

    1. FibreFred says:

      Do you ever stop trolling?

    2. GNewton says:

      Just for those other than FibreFred (who believes BT has a great company):

      https://uk.trustpilot.com/review/bt.com

    3. karl says:

      Don’t forget the opinions of readers here and how BT rank out of 50 other providers…
      http://www.ispreview.co.uk/review/top50.php

    4. TheManStan says:

      I’m not convinced about TrustPilot, it doesn’t really rate anyone well:

      BT 1 star
      SKy 1 Star
      Virgin 1 star
      TalkTalk 2 stars
      Vodafone 1 star
      Plusnet 1 star
      Zen 4 stars
      AAISP 3 stars
      Hyperoptic 4 stars
      Zen 5 stars

      Some of the top ISPreview ISPs list don’t even have a single review… Zen do rather well, yet AAISP don’t…

    5. Mark Jackson says:

      We only support the Top 10, while the Top 50 is an un-weighted list that doesn’t take into account the number of reviews an ISP has or its age like the Top 10 does (we only have a top 50 because some readers requested one without a weighting).

      We may discontinue the Top 50 and replace with a Top 20 or 25 in the near future so as to add some better weighting to the table.

    6. Ignition says:

      It gives GNewton something to post ad nauseam, though.

      Review sites generally are a poor guide.

    7. GNewton says:

      @Ignition: Well, the issues with BT have been going on for many years now. If you don’t like review/rating sites like ISPReview, Thinkbroadband, Trustpilot etc, then how about BT’s own consumer or business forums? Amazingly enough, BT itself has not prevented unfavourable forum posts on its own sites, and as quoted in this ISPReview article, BT has promised “to do better on service and has announced detailed plans to meet rising customer expectations”.

      I doubt that there will be a quick solution, the whole surrounding framework, including government and it’s BDUK strategies, have been riddled with issues, as well explained on your telcotorment site. The requirements for genuine infrastructure market competitions are insufficient at the moment, hence any improvements on the customer services front are still of relatively low priority.

    8. GNewton says:

      @TheManStan: I think you were using rounded 5-stars rating figures.

      AAISP is rated as an average 6.9 from 0 – 10, as opposed to BT’s 0.4 from 0 – 10, that’s quite a difference!

      And yes, Zen has been doing quite well with a 9.1 from 0 – 10, but has lately dropped in its customer experiences, which I also read about on ISPReview not too long ago if memory serves me right.

    9. AndyH says:

      @ Gnewton

      Why do you only post about BT and their Trust Pilot score? The others big ISPs hardly have impressive ratings either:

      Virgin Media – 0.8
      Sky – 1.3
      EE – 0.9
      O2 – 1.7
      Plusnet – 1.1

      I would be very surprised if you could find any large service company with a million plus customer base and a decent Trust Pilot score.

    10. FibreFred says:

      Why? Because it’s a good source to troll with.

      He probably has a trustpilot Macro assigned to a function key pre populated with the same text we see week in week out from him.

      Adding no value
      Boring people to tears

    11. GNewton says:

      @AndyH: Good point. That’s why I mentioned other review sites and forum sites, too.

      For example, take a look at http://www.thinkbroadband.com/isp/compare.html?isp_2=1&isp_7=1&isp_21=1&isp_84=1&commit=Compare where AAISP, Virgin Media and Sky clearly have a better rated customer service compared to BT.

      Even on Trustpilot, which may attract more negative reviews, you will find this:

      Virgin Media: 28.8% with 5 Stars, 17.2 with 4 Stars, …., 85.8% with 1 Star
      BT: 3.9% with 5 Stars, 1.7% with 4 Stars, …., 42.1% with 1 Star
      AAISP: 60.0% with 5 Stars, 15.0% with 4 Stars, ….., 20.0% with 1 Star

      In general customers are more likely to post negative reviews. But if you compare the various reviews/ratings sites you’ll find BT in the bottom league. Both Ofcom and BT have admitted to these issues and have published statements to do better.

    12. GNewton says:

      Correction: It should have read:

      Virgin Media: 28.8% with 5 Stars, 17.2 with 4 Stars, …, 42.1% with 1 Star
      BT: 3.9% with 5 Stars, 1.7% with 4 Stars, …, with 85.8% 1 Star
      AAISP: 60.0% with 5 Stars, 15.0% with 4 Stars, …, 20.0% with 1 Star

    13. TheManStan says:

      It’s not just the scoring but the numbers…

      I’d expect BT to have 2-3 times as many reviews as TalkTalk, but TalkTalk have the lead with 3500 reviews vs 1500 off for BT…

      Also the site doesn’t aggregate the same company, it works only by website address as individual entities…

    14. Ignition says:

      If this is actually a guide then the UK is full of morons. Millions are apparently handing money to BT for line rental and broadband despite their being unacceptable to 86% of their customer base.

      So I don’t for a moment buy that. The reviewing sample is self-selecting. People are going to that site to complain about BT while millions who are apparently content don’t see fit to comment.

    15. karl says:

      “We only support the Top 10, while the Top 50 is an un-weighted list that doesn’t take into account the number of reviews an ISP has or its age like the Top 10 does (we only have a top 50 because some readers requested one without a weighting).

      We may discontinue the Top 50 and replace with a Top 20 or 25 in the near future so as to add some better weighting to the table.”

      Surely if you do any of that the the problem will be either…
      A) the likes of BT, Talk Talk and other big fish will feature nowhere on it, which i imagine will confuse visitors to the site

      or

      B) If you get rid of all the small or specialty providers EG Fidonet (a brighton based service) and Hyperoptic (various new builds in the main) at the top of the Top 50. Then those that can get products from those companies and many similar in the list will have no idea how they perform.

      If you want to trim down the TOP 50 list then id suggest getting rid of the ISPs that no longer exist (IE all the ones marked as closed, you seem to have done that for BE broadband dunno why Tiscali who have been dead even longer than BE are still there).

      Then get rid of all those that no longer offer “broadband” products/services, there are plenty in the list that now only offer cloud services or reselling services. ICUK as one example looking at there site anyway no longer sell “broadband” to home and businesses (they from what i can make out are a reseller).

      Do those 2 things and it instantly cuts the list down by about a dozen or thereabouts.

    16. GNewton says:

      @Ignition: I wouldn’t call people morons. As I explained, these bigger review sites tend are more likely to attract negative reviews than positive ones. However, if you look at all major review sites, for the major ISPs, you’ll still find BT in the bottom ranks. Even Ofcom has pointed out that there are serious issues that need to be addressed here.

  2. Andrew says:

    Want to give the engineer more freedom to make decisions on repairs, especially replacing alumimum cable where needed.
    Took 1 engineer two days to finally sort my problem,& to get authorisation to replace a section of alumimum cable,& that was only after Mike Rake’s intervention.
    Something at least 7 previous engineers & the OR CEO hadn’t been able to do in over 2 years.
    So,many wasted vists could have been avoid,if those junior & senior managers were kicked out of their warm offices & spent 1 or 2 days a month with a engineer to see first hand the problems the engineers have.

  3. Kits says:

    BT has become to cluttered with administration too many cooks spoil the broth and BT now have too many.
    Need more engineers and less of the expensice high end bonus rated CEO under CEO and secretaries to secretaries.

    Stop being high paid deligaters and get back to working.

  4. karl says:

    “Gavin Patterson, has lost out on a bonus worth £290,000 due to a rise in customer complaints, but don’t feel too bad for him as his pay for 2015 still increased to £5.4m from £4.6m in 2014.”

    The joy of BT maths… Do a useless job you wont get a £290,000 bonus but you will get a £800,000 pay rise. No wonder they are a horrid organisation with little in the way of actual customer service skills, treating the punters like dirt gets you a 17.5% pay rise.

    1. Lee says:

      Obviously doing something right if profits are continuing to rise…

    2. Kev says:

      @karl – you mean they continue to make profits because of lack of existing network support at the coal face. The example above just confirms this. Those amount of visits, I’m sure the ISP had to pay for and CEO solution didn’t work but needed Chairman!

    3. karl says:

      Im not sure why you would think making profit automatically equals a good company. Maybe you have been in a coma for the past 10+ years and missed how the Energy companies and Banks have also been scum making plenty of profit but rewarding their own pockets.

      Mind you its not hard to make a profit when you increase prices of a product higher than inflation each and every year, no doubt another good thing in your presented thought process.

  5. Kev says:

    Above message was actually meant for Lee 🙂

  6. RICHARD WALTON says:

    What a cash cow. If the CEO didn’t turn up for a year they’d still make profit.

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