After floating two warnings this year at the Global Services unit post failure taking costs out of the business, British telecoms group (BT) has suspended all pay rises and cut the majority of its bonuses.

The company said, it has missed all financial targets based on free cash flow and earnings per share and hence no bonuses will be entertained.

In its annual report, BT said that the new chief executive of the troubled Global Services unit, Hanif Lalani, would not receive a bonus, after he asked not to give him one.

However, BT had to pay out 2.85 million pounds ($4.5 million) to the earlier chief executive of the unit, Francois Barrault, who had quit at the time of the first warning.

Two profit warnings were issued by BT up to March 31 at the Global Services unit.