Royal Mail chief pockets £1.1m as profits dive

[TrueBlueTerrier]

http://business.timesonline.co.uk/tol/b ... 779638.ece

Chief executive, Adam Crozier, is awarded a bonus of £500,0000 as Royal Mail's profits fall by more than a third
Dearbail Jordan

Royal Mail's chief executive, Adam Crozier, has been awarded £1.12 million in pay and bonuses as the strike-ridden UK postal service reported a 34.3 per cent fall in profits as a result of increasing pension costs.

The group also revealed today it only expects to break even in the current financial year because of funding its company pension plan, increased investment and falling postal volumes.

Mr Crozier, who was criticised during the recent postal crisis for allegedly failing to attend talks with unions, was paid a basic £633,000 as well as a £469,000 performance-related bonus, some of which has been deferred into a long-term incentive scheme. With £18,000 in benefits, Mr Crozier was rewarded a total £1.12 million.

Allan Leighton, non-executive chairman at Royal Mail, who recruited Mr Crozier in 2003, was paid a performance-related bonus of £200,000 on top of £20,000 in basic pay.

Royal Mail announced today that full-year operating profits had fallen from £355 million last year to £233 million, mainly because of a £193 million increase in pension funding costs to £722 million, as well as rising competition from other forms of communications and falling postal volumes.

The group admitted that the same competition and volume factors had impacted current trading, with profits down by £78 million in the first five months of the financial year.

Royal Mail said today: "Key issues for the company as we move forward are the continuing high cost of funding the pension scheme, the continuing decline in volumes as customers move to other forms of communication and the beginning of the huge investment we will now make in the modernisation of the company.

"All these factors combined mean that this year and next we expect to be operating at around break even."

[IWW Fellow Worker]

No mention of the £43 million given to the office boys as a bonus, or the £15 million wasted on plasma screens just to show propaganda to empty rooms.

[strangler]

Truth comes out at last, 'only' £233 million eh? And they tried to tell us in those phoney results a couple of months ago that they only made 30 million or so. Lying scumbags.

[Malatesta1954]

Shouldn't these figures have been out months ago. Oh silly me, then they were then telling us there was no more money. Yet now we have Leighton receiving 1000 (yes 1 thousand) % bonus. Didn't Gordan Broon say that anything more than 2.5% in the public sector would lead to increased inflation. Then again when has Broon ever applied restraint to the bosses.

Same as any previous Labour Government they end up attacking the workers that elected them.

[Spartacus]

Am I reading this right?

Royal Mail announced today that full-year operating profits had fallen from £355 million last year to £233 million, mainly because of a £193 million increase in pension funding costs to £722 million, as well as rising competition from other forms of communications and falling postal volumes.

Does this mean that the RM made £233 million profit and contributed £193 million to the pension fund?


Does that mean that without the pension deficit profits would have been £426 million?

Or is that a simplistic approach?



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[Stormproof]

Profits will be even less next year due to the amount of money they are blowing at the mo, vehicle telemetry, fans & lights above the frames, vans(virtually all our vans have been replaced by the new crew buses), changing the hi-vis jackets to name a few, I'm sure the list is endless.

Of course they will blame the strikes for not making a profit

[strangler]

And you can bet your ass they will release the full figures for next year ASAP so they can blame the strikes for losing them money.

[dvbuk55]

And you can bet your ass they will release the full figures for next year ASAP so they can blame the strikes for losing them money.

Actually I'm glad they've announced the true profits. They said it had made a 12 Million loss - we all knew they were lying but the Government refused to make them reveal the true operating figures rather than those legally bound to be revealed to Postcomm.

It just points out the duplicity these people employ. How long will it be before the executive action is back in the guise of flexibility and cooperation.

[Stormproof]

31 October 2007
CWU response to Royal Mail’s financial results

Royal Mail’s profits are disappointing and come as a direct result of mismanagement, Postcomm’s irresponsible decisions, and unfair competition.

Billy Hayes, General Secretary, said: “The CWU has consistently called for a government review on the impact of competition on postal services. In light of these results we now repeat that call for an urgent review.â€

[Albethere]

There would be NO problem funding the pension deficit if RM could charge a more realistic rate for Down Stream Access items!!!

Stop messing about you stupid managers and get a grip of those postcom bandits!!! Get a grip of the regulators!!! Tally Ho!

[dvbuk55]

[quote="k66yla"]31 October 2007
CWU response to Royal Mail’s financial results

Royal Mail’s profits are disappointing and come as a direct result of mismanagement, Postcomm’s irresponsible decisions, and unfair competition.

Billy Hayes, General Secretary, said: “The CWU has consistently called for a government review on the impact of competition on postal services. In light of these results we now repeat that call for an urgent review.â€

[mdtomuk]

SEEM TO REMEMBER BACK IN APRIL/MAY WE WERE TOLD THAT RM WAS MAKING A LOSS AND WE SHOULD EXPECT A NIL PAY RISE!

OH, AND WHAT KIND OF COMPANY BORROWS £75M AND ADDS IT TO THE PROFITS!

[harveyc]

just cant wait your out

[djsquires]

surly this must mean a no vote in the forthcoming ballot..... Croziers million against a misley 2.5% a year IF YOU HAVE ANY SENCE VOTE NO NO NO NO!!!!!

[Malatesta1954]

[quote="dvbuk55"][quote="k66yla"]31 October 2007
CWU response to Royal Mail’s financial results

Royal Mail’s profits are disappointing and come as a direct result of mismanagement, Postcomm’s irresponsible decisions, and unfair competition.

Billy Hayes, General Secretary, said: “The CWU has consistently called for a government review on the impact of competition on postal services. In light of these results we now repeat that call for an urgent review.â€