Royal Mail increases bosses’ bonuses

[TrueBlueTerrier]

http://www.ft.com/cms/s/0/1053e906-87e7 ... fd2ac.html

By John Willman, Business Editor

Published: October 31 2007 19:38 | Last updated: October 31 2007 19:38

Royal Mail has sharply raised the bonuses paid to its executive directors, despite plummeting profits last year and delays in the modernisation programme agreed with the government.

The state-owned group’s accounts for the year to March 25 showed directors’ pay, benefits and bonuses had risen from £4.3m to £7.3m, after the addition of large sums to incentive schemes that will pay out in 2008 if three-year financial targets are met.

Operating profit was £233m, down more than a third on the previous year’s figure of £355m as profits in the letters business almost halved and the group paid an extra £193m into its pension fund to reduce the deficit.

Royal Mail has also delayed investing the £1.2bn lent by the government to automate mail distribution under the agreement announced in May 2006. Alan Leighton, chairman, said it would have been pointless ordering new equipment without agreement with the unions on more flexible working practices.

Last week’s settlement of the long-running dispute with the Communication Workers’ Union had now cleared the way for modernisation, with a £350m order for 600 high-speed sorting machines to be placed later this month. Fully automating the letters business would take more than two years to complete, Mr Leighton said, during which time Royal Mail would only break even.

Adam Crozier, chief executive, saw his pay, including a performance bonus, rise from £790,000 to £859,000, plus £140,000 in lieu of pension. This was augmented by a further £1.1m paid into his long-term incentive plan, raising his total awards under the scheme to £1.6m.

Other directors also had large additions to their long-term incentive plans. The amount paid out next year under the schemes will depend on the financial performance of the business.

Mr Leighton defended Mr Crozier’s remuneration package. “The reason Adam gets paid what he gets paid is he runs a big company and he has done a very good job. Compared with other large companies, he is at the bottom end of the scale.â€

[G4GYJ]

No wonder there was no more money in the pot. They were saving it for Dozier and chums. What a complete and utter c***. :cfo :lfo

[pcb]

From costing £250,000,000 during the Industrial Action to 10,000,000 after then no wonder the accounts never add up. Or could it be that Leighton and Crozier told a lie? Integrity and principles cost nothing!

[k979aaa]

What i want to know is what bloody target's did they hit sample 1 coffie cup holding 2 pie eating (billy hayes not included) 3 arse hair picking asuming they get off their arses 4 turning up for work on time ( does not mean they have to work or turn up every day) 5 how many people you can bully in one day. TELL YOU WOT PUT SOME MORE OF YOUR'S DOWN LET'S HAVE A LAUGH.

[IWW Fellow Worker]

Not bad dosh for a shower of bastards whose lives have no more than a passing aquaintance with real work.