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ROYAL MAIL EXECUTIVE PAY  (Thursday 10 June 2010)

 

The Union has written to Vince Cable the Secretary of State for Business, Innovation and Skills calling for the Government to undertake an immediate enquiry into the pay and reward packages of the Royal Mail Group senior executives.

 

This follows the publication yesterday of the company’s Annual Report, which disclosed that the overall earnings of senior executives has again rocketed during a period where the company imposed a pay freeze on the workforce.

 

The report revealed the following information:-

 

Adam Crozier, former Chief Executive, took home a total of £2.4m in 2009/10. This was made up of the following:

 

· £633k in salary

· £225k in other benefits and cash payments

£1.5m pay out from the three-year Long-Term Incentive Plan (LTIP)

 

Ian Duncan, Group Finance Director, took home a total of £1.4m, made up of:

 

· £325k in salary

· £85k annual bonus (a further £99k of annual bonus went into his LTIP)

· £98k in other benefits and cash payments

£888k from the three-year LTIP

 

Ian Duncan’s salary is also due to rise by £25k in July this year, an increase of 7.7%.

 

Mark Higson, Managing Director of Letters, took home a total of £1.7m, made up of:

 

· £428k in salary

· £107k annual bonus (a further £114k of annual bonus went into his LTIP)

· £186K in other benefits and cash payments

£1.012m from the three-year LTIP

 

On top of this they are members of the Royal Mail Senior Executive Pension Plan. A final salary pension scheme now closed to new members.

 

In light of this information we will be pressing the Government to put into practice what they themselves have been preaching and take urgent action to curb these unjustified senior executive remuneration packages.

 

For any company – let alone a public sector company facing huge challenges – the pay and benefits disparity between senior executives and the workforce must be unacceptable to any fair minded person.

 

We want all CWU Branches and members to know that the Union will pursue this matter vigorously