RM bosses got £10m bonuses for 'efficiency drive'

[Stormproof]

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Royal Mail bosses got £10m bonuses for 'efficiency drive'

The measures that have angered workers into strike vote brought executives multimillion pound rewards

By Brian Brady, Whitehall Editor

Sunday, 11 October 2009

Royal Mail bosses have split more than £10m in "performance-related bonus" payments for pushing through the efficiency measures that have helped to push the organisation towards a national strike, it emerged yesterday.

A total of 13 current and former executives at the Government-owned company have been rewarded for hitting a series of targets to modernise key elements of the business, including Royal Mail and the Postal Service.

Chief executive Adam Crozier has been awarded a total of £2.4m in performance bonuses since arriving at the company in 2003. The figure boosted his £3.6m salary over the period by two-thirds – but it does not include a series of further perks that have added millions to his pay package during his time at the troubled company.

A Labour MP condemned the executives yesterday for taking so much money out of a struggling company – and complained that they were "rewarding themselves for failure".

Details of the hefty rewards for the tiny group of executives at the Royal Mail Group emerged as more than 140,000 postal workers this week prepare to take strike action over job security and working conditions.

The Royal Mail caused uproar last year when it revealed that Mr Crozier received a package worth more than £3m – about 180 times a typical postman's salary – at a time when he was pushing to close 2,500 post offices.

An investigation by The Independent on Sunday has revealed that Mr Crozier is not the only beneficiary of the company's success in forcing through changes deemed "absolutely essential" by senior managers. Since 2002/3, Royal Mail Group has paid its executive board members – who typically number between four and six at a time – a total of more than £22m in salaries alone. But the executives received £10.7m in performance-related bonuses.

The bonus bill has risen from £616,000, shared between seven executives and the former non-executive chairman Allan Leighton in 2002/3, to £1.03m split by just four individuals last year.

Royal Mail made an operating profit of £321m in the year to 31 March, but it was the first time in 20 years that all four parts of the business had been profitable.

Geraldine Smith, the Labour MP leading the campaign against any privatisation of the service, said: "At a time when they are telling us how perilous the Royal Mail's position is, they should not be taking millions of pounds out of the company. Anyone can make people redundant or cancel the second delivery."

A Communication Workers Union (CWU) spokeswoman said: "It's a disgrace that managers who are running down the business take unwarranted reward when they impose change on a low-paid workforce. These managers are failing to address the problems that postal workers face and failing to modernise the business effectively."

A Royal Mail spokeswoman said: "Pay for Royal Mail executives is set out completely transparently every year in the annual report, including for the year ended 31 March 2009, when Royal Mail more than doubled its profits in spite of the sharp drop in the market and tough economic conditions."

What the Royal Mail board members got

2002-03

Allan Leighton, former non-executive chairman

Salary £129,000

Bonus £889,000


Adam Crozier, chief executive

Salary £3,612,000

Bonus £2,467,000


Alan Cook, director

Salary £1,046,000

Bonus £473,000


Ian Duncan, director

Salary £925,000

Bonus £429,000


Mark Higson, director

Salary £848,000

Bonus £313,000


Former directors

David Burden

Salary £821,000

Bonus £428,000


Ian Griffiths

Salary £1,000,000

Bonus £262,000


Tony McCarthy

Salary £1,369,000

Bonus £641,000


David Mills

Salary £818,000

Bonus £322,000


Marisa Cassoni

Salary £963,000

Bonus £340,000


Elmar Toime

Salary £541,000

Bonus £178,000


Jerry Cope

Salary £318,000

Bonus £113,000


John Roberts

Salary £561,000

Bonus £185,000


2008-09

Adam Crozier

Salary £633,000

Bonus £453,000


Alan Cook

Salary £282,000

Bonus £166,000


Ian Duncan

Salary £325,000

Bonus £186,000


Mark Higson

Salary £428,000

Bonus £231,000

[POSTMAN]

It's a lovely Sunday Morning,and i've just been cheered up even more!

[postghost]

It's a lovely Sunday Morning,and i've just been cheered up even more!

Amen.

Just hope this helps sway public opinion.

[rhino49]

This seems to be reflected throughout industry and finance at the moment - the more you take off the people who actually make your business work, and the more you reduce the expenditure on their welfare and working conditions - the more reward you get. The savings that are made DON'T go into the company to improve it's stability - they go into the pockets of the decision makers - it's like them having their own little printing press for money and it is morally wrong.

We must now put ourselves in the position where we become the decision makers and set an example to our friends and colleagues in British industry that will change this reprehensible culture of wealth at the expense of humanity.

POWER TO THE POSTIES

[UNION IVOR]

The working man always gets kicked in the teeth :cfo :mfo

[krussel]

And why are we so surprised

[piranha]

So thats's almost 20% of Royal Mails total profit and justifiable because???????

:cfo :mfo

[baldrick]

Because they're worth it!


I hope the Telegraph doesn't think I mean this.

[chunk]

[quote="piranha"]So thats's almost 20% of Royal Mails total profit and justifiable because???????


I cant help help wondering how many bicycles etc you can provide with 10 million to invest?
As this week mine had a slow puncture and a loose saddle .

Or how many full time cycle mechanics would it pay?
between 500-700 depending on wages.

[UNION IVOR]

i think the workers have spoken so rm must listen .
ask the goverament to get involved is a joke with the exspence scandal,
i dont trust any of them.
they are corrupt
:cfo :mfo

[ade@cambs]

Yet at every management level they still refuse to admit that there is a bonus culture, talking of which will we get our £100 and stamps this year !!

[stephen500]

Yet at every management level they still refuse to admit that there is a bonus culture, talking of which will we get our £100 and stamps this year !!

They probally hope we will strike at Christmas as we will lose our £100 bonus!

[goinpostal]

And they say we're 25 per cent overpaid!

[pickaname]

Those figures are for 2002/03 are they not?

[chunk]

Those figures are for 2002/03 are they not?

if you read them there is a comparison between then and now.