Pay rise by share based payment

[zhk]

Any short fall in our pay deal can be made up by share based payment. Royal mail can dilute share and create an extra 10% shares for pay package. This will solve the problem from finding extra cash to pay us. And no extra saving required by job cuts. It will be paid by shareholders rather than company cash flow. Existing share holder must accept the fact that under current economical environment they have to take a hit in their investment. Don't forget over last three years shareholders enjoyed over £2 billions in dividend payment and it is time for them to pay part of it back.

[daveyeff]

just like that.

[sindba]

Any short fall in our pay deal can be made up by share based payment. Royal mail can dilute share and create an extra 10% shares for pay package. This will solve the problem from finding extra cash to pay us. Existing share holder must accept the fact that under current economical environment they have to take a hit in their investment. Also shareholders shouldn't forget over last three years enjoyed over £2 billion dividend.

Great idea.

We can take our 1 RM share to the One-Stop, see if they accept it as payment for the leccy meter.

[Moose67]

We should have had this from the moment we were "privatised" but as always we get shafted and only the ones above us get rewarded :

[Acca Dacca]

We should have had this from the moment we were "privatised" but as always we get shafted and only the ones above us get rewarded :

Well, we did

[Trumanity]

In the words of Brigadier General Anthony Clement "Nuts" McAuliffe at the battle of the bulge (Bastogne)...."Nuts!"

[JKSmudge]

Next !

[Cucumber]

What if a member already had shares themselves?

Diluting their own shares and then get them back again.

[zhk]

Your existing shares remain intact in number. Value may be hammered by 10%. But as an employee you will get extra shares.

[Cucumber]

Your existing shares remain intact in number. Value may be hammered by 10%. But as an employee you will get extra shares.

But no financial gain if the person already has shares, that's my point. They'd be effectively giving themselves a pay rise out of their own pocket.

[zhk]

At the moment total Market capital value is £2.16 billions, 10% of extra share is about £200 millions after dilution. This will be divided into 115 thousand postie, i.e., £1739 per postie. How many out of £2.16 you and me own - most of it is owned by big players. Think about Vesa equity already own 22% of total share capital. Share price drop is a temporary matter, it can bounce back even in higher value if the company can perform well.

[zhk]

You may loose 10% of your share value but gain about £1740 worth of shares. Besides, two week age share price was 20% less than today's value.
Reality is most our posties don't have large number of shares or not at all.

[sindba]

You may loose 10% of your share value but gain about £1740 worth of shares. Besides, two week age share price was 20% less than today's value.
Reality is most our posties don't have large number of shares or not at all.

Stop. Just stop.

[rambo1]

Somebody has to pay for the shares they don't just magic up the shares, they have an intrinsic value.

[postslippete]

I'm not sure what the OP means exactly but I still have quite a few shares in Royal Mail (or IDS as they are called now) when they gave us the Share Incentive Plan a few years back.

Nothing beats a decent pay rise but with a dividend on shares at around 8% it is better than just leaving your money in the bank. Regardless of the share price the reality is that you need a lot of money to earn a decent dividend and the fact is most posties only really understand cash in hand.