Verwaayen steps down as BT chief after turnaround

Verwaayen, a 56-year-old Dutchman, joined BT just over six years ago and is widely credited with having turned it from a troubled giant losing its monopoly into one of the most effective players in the telecoms industry. In particular, as Business Secretary John Hutton said when presenting him with his honorary knighthood, Verwaayen is largely credited with creating Broadband Britain.

Verwaayen said he was not leaving to join another company: "I haven't lost any of my passion for BT but smooth succession is a sign of strength in business and now was absolutely the right time. I've no idea what I want to do next but I'm not ready to start looking for non-executive directorships yet. I've still got a lot left in me.

Livingstone started as finance director of Dixons and then took the same role at BT before moving on to run its retail division with more than 12 million customers. He was selected to become chief executive after BT employed headhunters to look at external and internal candidates.

Chairman Mike Rake said: "Ian was the board's unanimous choice. His record at BT and Dixons is outstanding and he has a deep understanding of BT."

Livingstone's basic salary will jump from £525,000 to £850,000 although last year his total pay package with bonus was worth £1.2 million. Verwaayen received £2 million in pay and bonus last year.