They show that by 27 February Sir Peter, who moved to BT from computer giant ICL in January 1996, could be granted a maximum of 125,137 shares in the company depending on performance targets under the executive Long Term Remuneration Plan (LTRP).
Participants in the scheme, which has been criticised by large shareholders, have to wait five years before receiving the shares. Based on BT’s share price of 437p during trading yesterday, Sir Peter’s maximum award would be worth pounds 546,849. Sir Peter’s minimum possible share award earned so far is 20,856 shares worth pounds 91,141.The possible award comes on top of Sir Peter’s basic salary, which rose by pounds 95,000 from January to pounds 570,000 and an annual cash bonus.BT has denied speculation this week that some short-term bonuses, which are agreed this month by the executive pay committee, could be raised to as much as 100 per cent of basic pay to reflect the achievement of the MCI deal.The LTRP began in September 1994, replacing an executive share option scheme which had run since BT privatisation. Members have to invest a percentage of their annual bonus, which then multiplies depending on how BT shares perform in the 100-share index.The maximum award comes if BT shares are in the top 40 in the index over five years. It was intended to cover about 40 senior executives and by last month some 2.7 million shares had been allocated.The other main beneficiary listed in the document is Robert Brace, finance director, who unlike Sir Peter joined the scheme at the outset. He stands to earn between pounds 132,647 and pounds 739,233 from the LTRP, which gives him between 30,354 and 169,161 shares, based on yesterday’s share price.

Sir Iain Vallance, chairman, is not a member of the scheme, although he has 237,883 share options outstanding from the previous scheme.Anne Simpson, joint managing director of the shareholder advisory group Pirc, was one of the main critics of the LTRP. She said: “We advised clients at the annual meeting in 1995 that the scheme was too lenient. The performance targets were relatively low and the multiplier effect of the plan, we calculated, could give participants up to seven times their own investment in shares through a complex formula.”A BT spokeswoman defended the LTRP yesterday, claiming it was in line with industry best practice.Separately, Sir Trevor Chinn, chairman of Lex Service, saw his total pay jump by 16.9 per cent to pounds 453,667 in 1996, according to the car dealership group’s latest annual report and accounts.Comment, page 23. Martin Sorrell, chief executive of advertising giant WPP, is in line to scoop another share bonanza on Monday, worth pounds 3.2m at last night’s closing price, under a reward scheme that could net him pounds 25m over five years. The issue of 1.2 million free shares, which Mr Sorrell must keep until September 1999, will represent the second of up to four bumper payouts that he will receive if WPP hits certain performance targets. Mr Sorrell will collect his latest windfall because WPP’s share price has been above 230p for 60 consecutive trading days.

Last September Mr Sorrell picked up his first tranche of 1.2 million shares after WPP’s shares stayed above a 198p trigger price for the same period. He could qualify for a third share bonus as early as June because another 60-day clock started ticking on Thursday when WPP’s shares went back above a new trigger price of 265p. Last night WPP closed 3.5p lower at 272.5p, valuing the company at just over pounds 2bn.
However analysts said a third payout was not imminent. “The market will make sure he only gets one lot of shares each year, just to ensure he keeps performing,” said one broker.At the time the share incentive scheme was approved two years ago WPP’s remuneration committee said the conditions attached would be “nearly impossible” to achieve.Mr Sorrell, who has invested more than pounds 2m of his own money in WPP’s shares, also has salary benefits, bonuses and previously awarded share options that could push his five- year total to pounds 25m, of which pounds 14m will be in free shares.Some institutional investors have criticised the package as appearing to reward Mr Sorrell for merely returning WPP’s shares to the level they were at when he joined the company in 1985. WPP’s share price peaked at over 900p in 1987 before collapsing to just 27p five years later.But a series of financial restructurings allowed WPP to stage a recovery and last year it reported pre-tax profits of pounds 153.3m compared to just pounds 8m in 1992..

BZW, the investment bank, was yesterday censured by the Takeover Panel for failing to disclose the existence of a pounds 250,000 performance fee during its defence of Northern Electric against the hostile bid from CalEnergy last year. The Panel said it accepted that BZW had not deliberately concealed the fee but said nevertheless that it should have disclosed it.
The existence of the fee came to light in the dying days of the bid, shortly after BZW and Schroders went into the market and bought a 2.6 per cent stake in Northern in an attempt to thwart the pounds 782m takeover.CalEnergy’s advisers immediately complained to the Panel, which took the unusual step of extending the bid, thus allowing CalEnergy to receive enough acceptances from shareholders.Had the bid closed normally at 60 days then Northern would have escaped takeover by a whisker, with the aid of the shares bought by its advisers.The Panel executive said it believed there had been “no deliberate concealment” of the fee but criticised BZW for “failing to disclose all relevant facts”.In the event the fee was never paid. The episode provoked a heated debate about whether advisers should be allowed to buy stakes in companies they are defending – a practice which is outlawed in the US.. NatWest Markets, which has suspended five senior staff over the pounds 90m options mis-pricing scandal, yesterday parted company with another three senior executives following a shake-up in its global debt markets division.

Johan Hattingh, head of European fixed income, and Alby Cator, managing director of European primary markets, have left the investment bank as a result of the changes. Separately, Roger Nagioff, head of European equity trading and derivatives, has quit to join Lehman Brothers.
The overhaul follows NatWest’s acquisition last year of the US bond house Greenwich Capital and the creation of a new global debt markets division. NatWest stressed, however, that the changes were not connected with the mis-pricing scandal which has resulted in bonuses worth pounds 8m being docked from a handful of employees numbering between five and 10.The bank’s new global debt markets division will be run by Gary Holloway and Chip Kruger, both of whom worked for Greenwich Capital. Mr Holloway will be responsible for US and Asian operations while Mr Kruger will be based in London in charge of European debt market operations.As part of the management changes announced on Thursday following the disclosure of losses in NatWest’s interest rate options business, Vincent Tomasi is switching from being head of US debt capital markets in New York to take over as acting head of global debt derivatives in London.A spokeswoman said the changes, announced to staff on Thursday, played to the strengths of NatWest and Greenwich and would improve the operation of the debt markets division.However, others point to low morale and say that several staff are keen to depart following the shadow cast by the options mis-pricing episode..