British telecom (BT) has cancelled pay hikes and most of the bonuses after two profit warnings. The warnings have come from BT’s unit that provides network services to MNCs.

Even the Chief Executive of the Global Services unit, Hanif Lalani, would go without bonuses after he asked not to be in the reckoning for one.

But, BT had to pay £2.85 million ($4.5 million) to Francois Barrault, the former chief executive of Global Services, who quit during first warning.

BT said there would be no bonuses pertaining to financial targets this year because no financial targets on free cash flow and earnings per share were met. However, executive directors would receive some bonuses for their performance in other areas of work.

Barrault’s payment included the time he worked during the year and termination payment, but not bonus.

Ian Livingston, Group Chief Executive, will receive a bonus of £343,000, about 20% of his full bonus, which would amount to twice his salary. The bonus was on the basis of non-financial areas like better customer service, social and environmental elements. The bonus would be converted into shares and Livingston would receive no pay hike this year.

A number of projects running into less profits or even losses forced BT to issue two warnings at the Global Services unit.