Royal mail chief executive nets £1m

First published in National News © by

The Royal Mail's chief executive received pay and other benefits of over £1 million last year, the company reported.

Moya Greene's salary for the last financial year was £498,000 and she also received £371,000 under a short term incentive plan, £200,000 in pension payments and £38,000 in other benefits, taking the total to £1.1 million.

Ms Greene, who took over from Adam Crozier, is also in line for payments under a long-term incentive plan provided targets are met by 2014. Ms Greene, who is also eligible for two return flights a year to her native Canada, was paid £778,000 last year, although she joined part-way through the financial year.

The Royal Mail posted improved profits of £211 million, saying it was on the way to restoring the group's financial health. Revenues increased by 4% to £9.5 billion in the last financial year and the Royal Mail Group said it was cash-positive for the first time in four years.

The core postal business, which delivers the six-days-a-week universal service to 29 million addresses, is back in the black after four successive years of losses, making a profit of £23 million on revenues of £7.2 billion, up from a loss of £120 million last year.

The group's operating margin after modernisation costs improved to 2.2% from 0.4% last year, to £211 million from £39 million.

Donald Brydon, chairman of the Royal Mail Group, said: "Without Moya Greene's unwavering determination, Royal Mail would not have achieved many of its strategic milestones over the past year, such as the successful achievement of state aid clearance and the creation of a new regulatory structure.

"The board agrees that Moya's bonus award is in proportion to the very significant progress she has already made in returning the business to financial health and preparing it for the future."

The group's European parcels business, GLS, and the Post Office business accounted for 89% of the profits after modernisation costs. GLS increased revenues by 5% to £1.6 billion and profits were up 8% to £128 million, while Post Office Limited revenues grew by 3% to £801 million, making profits of £59 million.

Royal Mail said it was now a going concern after the Government took on its pension liabilities under moves to part-privatise the business. The basic pay of a postal worker is just under £20,000. The Communication Workers Union said Royal Mail's improved financial results were good news for the industry, the public and the workers.


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