Royal Mail owner accused of rewarding failure as it plans to hike boss's pay

[TrueBlueTerrier]

https://www.thisismoney.co.uk/money/mar ... s-pay.html

Royal Mail's owner has been accused of 'rewarding failure' as it plans to boost its boss's bonus amid a controversial takeover by a Czech tycoon.

International Distribution Services (IDS) will this month ask shareholders to approve hiking Martin Seidenberg's maximum award by £300,000.

That could see him take home just over £3 million – twice as much as he earned last year – as he oversees the sale of Royal Mail to billionaire Daniel ­Kretinsky, known as the 'Czech Sphinx' for his inscrutability.

A deal would see the 508-year-old postal service fall into foreign ­ownership for the first time since it was established by Henry VIII in 1516. IDS said that the raise reflects ­Seidenberg's 'complex' role ­leading the business 'through the ­current challenges'.

Andrew Speke at the High Pay Centre think-tank said Seidenberg's 'significant' pay rise after the company's 'much publicised failings with Royal Mail' was 'an indictment of the failed model for rewarding executives that currently exists in the UK'.

'It can sometimes feel that top executives are being rewarded for failure,' he added.

IDS wants to increase Seidenberg's long-term incentive plan (LTIP) to 200 per cent of his base salary, from 150 per cent.

Shareholders will vote on the pay deal at their annual general meeting later this month.

The meeting comes as the IDS board faces criticism for accepting Kretinsky's £3.6 billion bid despite being close to winning key regulatory reforms it has demanded.

These include scrapping second-class deliveries on Saturdays, which could save Royal Mail £300 million a year.

Royal Mail has also been criticised for poor customer service. The postal service was last year fined £5.6 million by regulator Ofcom for failing to meet its delivery targets.

In May, the watchdog revealed that Royal Mail had failed to meet its targets again, and is investigating whether to issue a penalty.

In its annual report, IDS said it wants to boost Seidenberg's bonus to 'reflect the scale' of the new group chief executive role, which oversees both Royal Mail and IDS's European parcels business GLS.


A bumped-up bonus would be 'a more appropriate incentive to successfully lead the group through the current challenges and deliver on the opportunities available to both GLS and Royal Mail', an IDS spokesman said.

He added: 'The group chief executive role is a complex role and it is appropriate that the LTIP opportunity, which is subject to delivering performance across the portfolio and returns to shareholders, reflects this.'

The move will bring Seidenberg's maximum LTIP pay in line with the average for the top 50 FTSE 250 companies, the spokesman said.

The amount Seidenberg is in line for depends on IDS meeting ­targets on certain financial measures including operating profits and cashflow.

[Barnacle]

Incredible.

[Jb1969]

Corrupt to the core, this is the UK.
Hourly that’s £1,400 odd for a 40hr wk.

[dazzler123]

well done, must be doing a fantastic job

[oypostie]

He can have his bonus when i start receiving my mail more than once a week again

[Mr Rush]

I know they already changed the parent company name, but they should ditch 'Royal Mail' entirely to reflect the fact the CEO is wrapping his mouth around Kretin's anterior protrusion and not that of Charles III.

[derekm]

Directors seem to be the only ones who seem to benefit out of privatisation. I know shareholders get a dividend when the company is in profit but customers seem to be forgotten

[postslippete]

Directors seem to be the only ones who seem to benefit out of privatisation. I know shareholders get a dividend when the company is in profit but customers seem to be forgotten

Is there a direct correlation between 1st class stamps going up by 30p that was announced just a few days ago and Seidenberg's potential increase in pay? Probably not, but this is a business culture that puts the interests of investors before workers, customers and other stakeholders. This isn't a fair distribution of the wealth that workers are responsible for generating and will Labour doing anything to curb executive pay as part of its "new deal for working people" that it promised in its election manifesto.

[GRS]

Directors seem to be the only ones who seem to benefit out of privatisation. I know shareholders get a dividend when the company is in profit but customers seem to be forgotten

Is there a direct correlation between 1st class stamps going up by 30p that was announced just a few days ago and Seidenberg's potential increase in pay? Probably not, but this is a business culture that puts the interests of investors before workers, customers and other stakeholders. This isn't a fair distribution of the wealth that workers are responsible for generating and will Labour doing anything to curb executive pay as part of its "new deal for working people" that it promised in its election manifesto.

Will they hell!!!! They’re all in it together (and I don’t just mean RM), scratching each other’s backs. This country is completely f****d in the way it sees business & its workers. God knows where this is all gonna stop!!

So the guys at the top who don’t give a fly about the business, its customers or staff get massive pay increases and yet the foot soldiers who are the only ones who really care are told that they are the reason a business is f****d. How comes if the business is being that royally f****d by the scum at the bottom is it performing so well as to give the top dogs such massive pay rises!!!!

[POSTMAN]

[tramssirhc]

We're told everyday there's no money and the industry doesn't make money. Every time we demand the CWU get off it's arse and stands up for us Martin Walsh cries administration. Yet some bloke wants to buy it for billions and some other bloke is getting paid £3 million.

[GRS]

Should have called their bluff and said “ go on then, put it into administration”.