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The 49-year-old Dutchman worked within the Dutch telecommunications industry with KPN (Koninklijke PTT Nederland) prior to joining Lucent in September 1997. He became vice chairman in October 1999. Joining BT Group as 'CEO-designate' on 14 January 2002, he will officially become CEO on 1 February when Bonfield leaves the company.

Verwaayen was upbeat about taking on BT's struggle to maintain profitability and eliminate a large debt: 'I am thrilled to be joining the BT Group at this point because the company has such exciting possibilities going forward. With clear focus, determination and

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the breadth of talents within the company I am sure BT can and will deliver to its customers, shareholders and employees. BT undoubtedly has a great future and I'm going to enjoy being part of it.'

His predecessor, Sir Peter Bonfield, gave his notice back in October. Despite the company's share value falling from a peak of £14 during his six-year tenure to nearer £3, he controversially received leaving benefits that included one year's worth of salary (£820,000), one year's 'on-target bonus' (£615,000) and a number of other benefits, including a company car (£50,000).

These were justified, at the time, as being contractually obliged. I wonder if the company has been equally scrupulous with the new incumbent's contract. In an official statement, BT Group reveals: 'Ben Verwaayen will be paid a base salary of £700,000 per annum with an on-target bonus of 85 per cent of salary and a maximum bonus of 130 per cent. He will receive a one-off grant of £1m of restricted stock on joining BT Group plc which vests after three years. He will invest £1m of his own funds in BT Group stock and this will be matched by the company with £1m of restricted stock, vesting after three years.'