Channel 4 CEO Alex Mahon could receive the highest annual income ever for a chief executive in the broadcaster’s history, following the successful avoidance of privatization earlier this year.
While the top executives stand to take home millions, the lower-paid staff face the weight of the cost-of-living crisis.
In 2022, Mahon, who received the maximum bonus payout for 2021 as determined by the corporation’s remuneration committee.
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She may earn nearly £1.4m in total remuneration if she meets the top performance targets once again.
Channel 4’s approximately 1,000 staff also benefit from the company’s performance,
The broadcaster’s annual report highlights the rapidly widening pay gap between top management and regular employees.
Mahon’s pay increased from £991,000 in 2020 to £1.196m in 2021.
In 2021, her pay was 30.3 times higher than that of a Channel 4 employee in the 25th percentile, compared to 23 times in 2020.
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If her estimated remuneration for last year is confirmed, it will surpass the previous record held by former CEO Andy Duncan, who received £1.21m in 2007, aided by a special bonus related to his move from the BBC.
Throughout her nearly six-year tenure, Mahon successfully steered Channel 4 through the challenges of the pandemic and thwarted the government’s recent attempts to privatize the state-owned broadcaster.
In 2021, Channel 4 achieved record revenues of £1.2bn, exceeding £1bn for the first time and representing an 18 percent increase from pre-pandemic levels.
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Acknowledging her leadership during a period of significant uncertainty, Channel 4’s board raised the maximum annual bonus payout for Mahon from 50 percent to 80 percent of her base salary in 2021.
However, it is understood that the broadcaster’s financial performance for last year fell short of the record levels seen in 2021.
Mahon is expected to become the best-paid executive at Channel 4 since its establishment 40 years ago.
This is partly due to a decision made during the government’s privatization drive, where the board awarded a separate “retention bonus” to recognize the commitment of staff during that challenging period.
The additional bonus, payable to those who remain in their positions until June 2023, is set at 25 percent of the base salary for top executives, 20 percent for other management, and 15 percent for regular staff.
After successfully navigating significant challenges, including the threat of privatization and operational shifts.
There is speculation about whether Mahon might seek new opportunities following the receipt of her £153,000 retention bonus this summer.
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Collectively, Channel 4’s top management, including Mahon, Chief Operating Officer Jonathan Allan, and Chief Content Officer Ian Katz, are likely to receive approximately £3m in pay and bonuses for the previous year.
Mahon’s potential bonus falls between 30 percent and 80 percent.
In total, Channel 4 pays out around £5m annually in bonuses to regular staff, who will also be eligible for the additional “retention bonus” in the 2022 awards.
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Mahon’s remuneration will be made public when the corporation publishes its annual report in June or July, while Channel 4 has chosen not to comment on the matter.
