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Allison Kirkby, BT's first female chief executive, saw her total remuneration rise to £5.58 million for the year to March 2026 – more than double the £2.48 million she earned in her inaugural year and the highest pay award at the telecoms group in over a decade.Kirkby's Compensation Package More Than DoublesThe remuneration package, announced in June 2026, includes a £1 million cash bonus payable this month and £3.25 million in share awards under a long‑term incentive programme that will vest over three years. Her base salary was increased by 3 % to £1.1 million, while BT secured a 4.1 % pay rise for staff earning under £30,000 and a 3 % rise for higher earners.Breakdown of the £5.58 million Package and Historical ComparisonsCash bonus: £1 millionShare awards: £3.25 million (vest over three years)Salary: £1.1 million after a 3 % increaseTotal 2025‑26 package: £5.58 millionPrevious year (2024‑25): £2.48 millionPredecessor Philip Jansen's peak: £3.7 millionIan Livingston's 2012‑13 award: £9.4 millionImpact on BT's Share Price and Workforce RestructuringBT's share price has surged almost 80 % since Kirkby took the helm in February 2024, a rally that directly inflates the value of her share‑based awards. The rise comes as the company completes a costly infrastructure upgrade programme and has already cut 55,000 jobs from a global workforce of 130,000, citing efficiency gains driven by AI.Future Outlook for Executive Pay and BT's Strategic DirectionAnalysts expect heightened scrutiny of executive remuneration as BT balances shareholder returns with ongoing cost‑cutting and investment in full‑fibre and 5G networks. If the share‑price momentum continues, long‑term incentive awards could push future pay packages even higher, while union negotiations may temper salary growth for the broader workforce.

The Impact of AI on Chip Supply Chains BT has warned that the cost of smartphones could rise as technology companies buy up semiconductor chips due to the boom in artificial intelligence, putting pressure on supply chains. Chip Shortages and Price Increases The telecoms company’s chief executive, Allison Kirkby, said she was anticipating shortages as tech firms bought large quantities of memory chips to power the datacentres relied on by AI. Kirkby added that price increases would mainly hit smartphone handsets, but could also affect the cost of routers. The Data Analysis Memory chips are essential for almost every modern item of electronics and are also used in other important components such as graphics cards. The largest manufacturers of laptops and phones, including Microsoft, Samsung and Dell, have already begun to put up prices in response to the chip shortages and have pulled cheaper models from the market. Sony has also hiked the price of its PlayStation 5 consoles, including a $100 (£75) increase in the US, while Nintendo has confirmed a price rise for its Switch 2. The Impact Analysis A global investment spree in AI has led to a huge expansion of server farms, enormous banks of computers filled with high-end memory chips. These requirements are not only consuming the world’s current supply of chips, but also production capacity for the coming years, creating shortages and driving up the cost of electronics. The Prediction Kirkby said she had not yet seen price increases from premium handset manufacturers, but expected companies such as Apple to pass higher costs on to customers. BT plans to cut costs by a further £700m over the next four years and reported flat full-year earnings and falling revenues.