Royal Mail in bid to placate shareholders over boss Rico Back's pay packet - cutting bonus from 200% of salary

[TrueBlueTerrier]

https://www.thisismoney.co.uk/money/mar ... acket.html" onclick="window.open(this.href);return false;

Royal Mail has been sounding out investors over plans to change its chief executive’s pay packet.

The company has spoken to large and small shareholders over arrangements for Rico Back’s annual pay that will put more of an emphasis on long-term payouts.

These talks are an attempt to appease investors after the postal service was hit with one of the biggest pay revolts in UK corporate history last year, when an unprecedented 70 per cent refused to support its bosses’ pay package.

A source told the Mail the proposals would cut Back’s maximum cash bonus from 200 per cent of his salary to 150 per cent.

The company will increase his long-term bonus, which is awarded in shares and linked to long-running performance measures, from 100 per cent to 150 per cent of his salary.

The changes would mean the highest take-home cash bonus he could receive in a given year would be £960,000, rather than £1.3million.

The industry source said shareholders have generally been receptive to the plans.

But it is unclear whether the shake-up will be enough to satisfy investors who are angry about payouts to top staff despite a torrid share price performance.


The company floated at 330p per share in 2013. But it has plunged and hit record lows of 234p per share this year.

Back, 65, took the top job at Royal Mail last June and the 503-year-old firm was slammed for paying him £5.8million to buy out his contract from his previous job leading the postal firm’s European parcels unit, General Logistics Systems.

He will pocket a basic pay, pension and benefits package worth £790,000 on a salary of £640,000.

A Royal Mail spokesman said: ‘We have held constructive meetings with a number of our shareholders.’

[teesdale]

£5.8 million upfront plus £640,000 per year. I would of thought any bonus on top of that pile of cash would be nice but not missed. If you have everything that money can buy what would an extra £300,000 buy. I expect he's already had his hair and teeth done which only leaves the Viennetta.

[Celgar]

RM is reported to have a 50% share of the parcels market so we can't be doing that bad. Most days we go over our time with much of this excess work not being paid for. Therefore we must be working at pretty much optimum productivity if not "110 percent" !! The share price is so low and 'torrid' mainly because we are still one of the most heavily shorted companies with about 7% of the shares held by entities looking to drive us into the dirt. In addition our own bosses continue to excessively line their own pockets while projecting a deeply pessimistic view of our future and making a terrible job of running the company.

[rambo1]

RM is reported to have a 50% share of the parcels market so we can't be doing that bad. Most days we go over our time with much of this excess work not being paid for. Therefore we must be working at pretty much optimum productivity if not "110 percent" !! The share price is so low and 'torrid' mainly because we are still one of the most heavily shorted companies with about 7% of the shares held by entities looking to drive us into the dirt. In addition our own bosses continue to excessively line their own pockets while projecting a deeply pessimistic view of our future and making a terrible job of running the company.

Why isn't the 'excess work not paid for' ? Don't work for free mate , it aint a charity.

[maisymoo04]

and we get a sh@@@ 2% £8.40 was it , disgusting this company the gobs@@@ does fu@@ all and were the ones who suffer the cuts , if I had the balls I would leave tomorrow totally had enough now 28 years and am 46

[rambo1]

and we get a sh@@@ 2% £8.40 was it , disgusting this company the gobs@@@ does fu@@ all and were the ones who suffer the cuts , if I had the balls I would leave tomorrow totally had enough now 28 years and am 46

I get ya point, but every company is much the same mate. Just have to accept it or spend your time angry and stressed. Do the job, don't rush round, claim if you have to and go home and forget about royal mail til the next day. If you look around, we actually get paid pretty well for what we do. Just chill, can't control the uncontrollable, yeah they do get paid way too much for what they do, can you do owt about it? No. I just turn up bang on time, do the job correctly, no rushing around claim when I'm over and go home. No stress.

[maisymoo04]

I do that meself Rambo your right what your saying mate just stuff like that make me boil

[AussiePete]

who is working for nothing? I bet Rico is claiming everything... Our office if you go over you book it.. If not bring it back

RM is reported to have a 50% share of the parcels market so we can't be doing that bad. Most days we go over our time with much of this excess work not being paid for. Therefore we must be working at pretty much optimum productivity if not "110 percent" !! The share price is so low and 'torrid' mainly because we are still one of the most heavily shorted companies with about 7% of the shares held by entities looking to drive us into the dirt. In addition our own bosses continue to excessively line their own pockets while projecting a deeply pessimistic view of our future and making a terrible job of running the company.