Michael Smurfit is not alone when it comes to receiving whopping salaries for presiding over poorly performing companies.

The Margin noted this week that British Telecom (BT), owner of Esat Telecom, became embroiled in more controversy when it emerged that Sir Christopher Bland is to receive a bonus of up to £2 million sterling, in addition to his salary as part-time chairman.

It was also disclosed that the chief executive, Sir Peter Bonfield, who has been at the helm during the company's disastrous decline, is in line to collect more than £5 million sterling if he remains in situ until the end of next year.

In addition, he could earn another £3 million from existing performance-based share schemes.

BT's share price has fallen from £15 per share 18 months ago to around £5. Understandably, shareholders are furious.

They are being asked to give the company another £5.9 billion to help clear BT's £30 billion debt and the private shareholders are forgoing the next two dividend payments.

Defending the payments to Sir Peter, a BT spokeswoman told the Guardian that his rewards had been put in place to ensure that he stayed with the company until the end of 2002. "We do need some continuity - this is a very important time for BT," she said.

The Margin wonders what exactly continuity means in this case.