Channel 4’s top brass will have their remuneration cut by up to 40% this year, but will still receive bonus payments despite the broadcaster’s challenging 2023.
This year’s annual report will show that the total remuneration for Alex Mahon, Ian Katz and Jonathan Allan will be down between 30-40% for 2023 in comparison with 2022’s figures.
The reductions come as the broadcaster continues to ride out “market shock” in the ad sector, which has led to the axing of 250 roles and significant commissioning budget cuts at the company already this year. Top execs had also deferred their bonuses as a result of market conditions, although C4’s own chair had called this “signalling” in the context of £700m cuts in content budgets.
The decision on bonuses has been approved by C4’s Remuneration Committee, with eligible employees including Mahon, Katz and Allan receiving reduced bonuses, paid at about half of the maximum opportunity.
In 2022, chief executive Mahon earned almost £1.5m in total remuneration, including a deferred loyalty bonus of £155,000 bonus.
Depending on whether the 30-40% reduction includes her deferred loyalty bonus, Mahon is likely to take home somewhere between £800k and £900k for 2023.
Chief content officer Katz was paid £737k including conventional bonus, with a deferred payment of £108k. A 30-40% reducition would see him paid between £440k and £507k.
The C4 boss’ bonuses fell under scrutiny in 2023, leading to the trio deferring their combined £400,000 loyalty bonuses in June last year. The bosses also chose not to take an annual pay rise, which was awarded to all other C4 staff. It is understood that senior leaders at the broadcaster will also not be receiving a pay rise this year.
C4 said in a statement: “Channel 4 is entirely commercially funded and makes sustainable financial decisions to support the delivery of its remit and boost the UK creative industries. It also has to attract and retain high-calibre employees in a competitive market.
“C4’s annual report – published later this year – will show a 30 to 40% reduction in total remuneration awarded to executive members in 2023, compared to 2022. As usual, Channel 4 will share detailed information on executive pay in the annual report.”
The statement continued: “After careful and considered evaluation, Channel 4’s Remuneration Committee recommended that the Corporate Variable Pay Scheme be paid at half of the maximum opportunity for eligible employees. The award was calculated from Channel 4’s annual targets, remit and business goals.”
