London, May 27: Following two profit warnings from its Global Services Unit, British telecoms group BT (BT.L) has reportedly cut all pay rises along with majority of its bonuses.
"There are no bonuses relating to financial targets this year as all financial targets were missed," the company said in its annual report.
The company said that the new chief of the troubled Global Services unit, Hanif Lalani, who asked for a bonus may not receive one. But at the time of the first warning the company had paid 2.85 million pounds to the former chief executive of the unit, Francois Barrault, when he quit.
However Chief Executive Ian Livingston will receive a bonus for the year, for his performance in customer service and environmental and social measures. Livingston reportedly will convert this bonus into shares.
The U.K. telecommunications company said that although some 'discretionary recognition payments' would be paid to some staff below board level, there will be no bonuses paid at Global Services unit that provides network services to multinational companies.