Royal Mail 'tried to bury bad news' on boss's salary

Published on Friday 23 May 2008 22:25

THE Royal Mail was last night accused of rewarding its bosses for "failure" after it was revealed that its chief executive Adam Crozier received more than £3 million in pay, pensions and incentives in the last year.

The company, which is under attack for closing 2,500 post offices, was criticised for trying to "bury bad news" by publishing details of its directors' pay on a Friday afternoon ahead of a Bank Holiday weekend when the media spotlight was on the Crewe by-election.

Figures for the 2007-8 financial year showed Mr Crozier's basic salary unchanged at 633,000, but was boosted to 843,000 by an annual performance bonus and other benefits. He also received 1.99 million for a long-term incentive plan and a cash supplement in lieu of pension of 208,000, according to the report.

Royal Mail's chairman, Allan Leighton, said: "The payment covers three years during which the group, led by Adam and the team, has consistently exceeded expectations and met all the targets set by the shareholder, and that's against a backdrop of a declining overall mails market, accelerating competition and a pension fund that consumes 800 million a year in cash."

Billy Hayes, general secretary of the Communication Workers Union, said: "Royal Mail has just claimed that it is in financial crisis, that employees are overpaid and is trying to reduce the pension benefits of its staff.

"At the same time as this, executive pay is completely out of control. This is an outrageous use of public money at a time when post offices and other Royal Mail offices are closing and postal services are being cut back. Adam Crozier is again being rewarded for managing decline instead of improvement in the company.

"This is a massive insult to employees and the public."

Paul Reuter, national officer of the Unite union, said: "This is immoral. It comes at a time when they are cutting jobs and pensions and closing post offices."

Mr Reuter accused the company of trying to "bury bad news" by releasing the details on a Friday afternoon ahead of a holiday weekend.

The report showedMr Crozier also received 45,000 as a director of store chain Debenhams.

BACKGROUND

ROYAL Mail reported earlier this month that its letters business lost 3 million in the last financial year after the number delivered every day fell by three million to 80 million.

The group's operating profit fell by almost a third, to 162 million, while the universal service, which guarantees the same price and delivery date for letters throughout Britain, was in the red for the first time to the tune of 100 million.

The government announced that 2,500 post offices will close by the end of the year, leaving around 11,500 branches.

Postcomm, the postal regulator, called for Royal Mail to be partly privatised to safeguard the quality of the UK's mail delivery service.

It warned that Royal Mail's financial difficulties would worsen unless bold action was taken.