Royal Mail revenues and profits rise – and boss pockets £1.1m

By ALAN JONES
Published on 30/06/2012 00:00

THE Royal Mail’s chief executive, Moya Greene, received pay and other benefits of more than £1 million last year as she claimed it was returning to health.

Greene’s salary for the last financial year was £498,000 and she also received £371,000 under a short-term incentive plan, £200,000 in pension payments and £38,000 in other benefits, taking the total to £1.1m.

Greene, who took over from Adam Crozier, is also in line for payments under a long-term incentive plan provided targets are met by 2014.

Operations director Mark Higson received a total of £887,000, including a salary of £428,000, the company’s remuneration report revealed.

The Royal Mail posted improved profits of £211m on revenues up by 4 per cent to £9.5 billion. The group is cash-positive for the first time in four years.

The core postal business is back in the black after four successive years of losses, making a profit of £23m on revenues of £7.2bn, up from a loss of £120m last year. The group’s operating margin after modernisation costs improved to 2.2 per cent from 0.4 per cent last year.

Chairman Donald Brydon said: “Without Moya Greene’s unwavering determination, Royal Mail would not have achieved many of its strategic milestones over the past year, such as the successful achievement of state aid clearance and the creation of a new regulatory structure.

“The board agrees that Moya’s bonus award is in proportion to the very significant progress she has already made.”

The group’s European parcels business, GLS, and the Post Office business accounted for 89 per cent of the profits after modernisation costs. GLS raised revenues by 5 per cent to £1.6bn and profits were up 8 per cent to £128m, while Post Office Limited revenues grew by 3 per cent to £801m, making profits of £59m.