The BBC has said executive pay rises are warranted even as thousands of staff face redundancy.

Speaking on the Today programme after the publication of the corporation's annual report and accounts, director-general Mark Thompson said bonuses of up to £107,000 each for high-level staff were "in many cases, a tiny patch on what other broadcasters are paying".

The report was published after a testing year for the BBC, with criticism of its editorial policy after an advertisement for a documentary about the Royal Family was found to have been misleading.

BBC content such as Comic Relief and Blue Peter were found to have been involved in unfair practice regarding phone-in competitions and a strike was narrowly avoided in January after the broadcaster agreed terms with unions regarding controversial cost-cutting plans.

But according to the new report, the corporation has succeeded in rebuilding trust with audiences while the "phenomenally successful" iPlayer service - on which more than 3.5 million programmes were watched in just three weeks - has shown the BBC's determination to move forward.

Some 2,500 staff faced redundancy earlier this year as the BBC Trust sought to reduce outgoings following a £2 billion budget shortfall, yet Mr Thompson explained that substantial bonuses for directors were "benchmarked" against other public sector firms and reflected the employees' responsibilities.

"We also faced an episode in which the trust of our audience was seriously tested," he continued. "But the determined response of all of the BBC to the problem, and subsequently the rigorous new safeguards that we put in place have resulted in levels of trust returning to normal.

"Above all, the BBC is about content that entertains, informs and delights, and last year I believe our output across television, radio and online did more to achieve that than any year as director-general I can remember."

BBC Trust Chairman, Sir Michael Lyons, added: "This year's report shows many achievements – not least the extraordinary iPlayer – and considerable progress against those objectives.

"It also demonstrates that when the BBC performs strongly the public approves. We take particular strength from the fact that we appear to have restored public trust by determined effort to tackle the editorial lapses of last year.

"There is still much to be done but we are confident that the BBC is stronger for its new more challenging governance arrangements which add to its many other strengths."

A spokesman for Bectu, the broadcaster's union, said it was 'inappropriate" to offer "hefty bonuses" when thousands of BBC staff had been redundant in recent months.

"Many of the directors received increases in both their basic pay and bonuses," he continued, "while all of our members are doing 20 per cent extra work since the lay-offs."

"We'd like to know where [the director's] extra work is coming from", he added, making reference to Mr Thompson's claim that directors had taken on extra responsibilities.

"For example, the BBC Trust has 61 staff and spent £12 million in the last year, which amounts to £200,000 per head.

"What we want to ask is - is that value for money?"
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