Royal Mail bosses miss out on bonuses after poor results

[TrueBlueTerrier]

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The entire board of Royal Mail has missed out on any bonus this year after a disastrous period for the postal service, according to the company’s annual report.


Chief executive Rico Back, who faced heavy criticism over a £5.8 million golden hello when he joined last June, missed out on an annual bonus and former boss Moya Greene also failed to secure a payout following poor results.

Mr Back still took home for the 10 months from joining to the end of March £647,000, including £21,000 in benefits for a car and medical insurance.

However, an annual bonus, worth up to £1.1 million, was missed as results were worse than expected.

Last October the company issued a shock profit warning, saying that cost-cutting was going slower than expected.

Cost savings would only hit £100 million this year, compared with initial plans of £230 million. Letter volumes fell 7%.

Royal Mail has said previously it will listen more closely to shareholders after investors rejected last year’s pay report over accusations of excessive pay.

In the annual report, chairman Les Owen said he was “disappointed” with last year’s annual meeting results – which saw 71% of investors reject the pay report – but said “lessons have been learned”.

Since then, the company said it would change the way its bonus schemes – an annual one and a long-term one – operate, with the maximum annual bonus falling from 200% of an executive’s yearly pay to 150%.

Royal Mail also parted ways with Orna Ni-Chionna, senior independent director, who will stand down at the annual general meeting next month after nine years with the business.

As chair of the pay committee, she was blamed by many shareholders for allowing the £5.8 million payment to Mr Back and a near £1 million “golden goodbye” to Ms Greene.

This year, the long-term incentive plan set up in 2016 will also not pay out, the annual report said.T

[rambo1]

About time executive bonus culture was stopped. I'd very much like up to 150% of my annual wage as a bonus. How about no bonus at all and if the company doesn't do well while they're in charge, sack em. They all have shares which will perform well if the business does. That should be their only bonus.

[Celgar]

Miss Ni-Chionna was obliged to leave her post due to the nine year rule but there was never any acceptance of guilt on her part. Note there is no bonus scheme in place for the employees on the front line that do all the work and keep everything rosy. I suppose we did have the free shares and were encouraged to invest our own money into buying more shares before Rico threw a big spanner in the works. I suppose there is the small silver lining that Moya Greene won't be receiving any bonuses for all the destruction she started.

[spen]

They lost me at bonus reduced to 150 % of annual salary

[houseoflords]

Thieves every single one of them

[Jpro747]

Bonus culture = bullying = poor performance

[tucker12345]

Bonus culture = bullying = poor performance

100% well said

[aiden01]

Bonus culture = bullying = poor performance

So now bonus has been cut.. do you really expect the above to improve..

[UNION JACK]

Best post of the year ,they don't deserve nothing,can just see them upstairs now thinking of ways to stitch us up because they couldn't fill their pockets this year.Be great if they went on strike,nobody would miss them the office would run better without them sticking their nose in.They should make our union rep manager he'd do a better job and the boys would respect him.The CEO has no idea how these lot are sucking the life out of the company.