Royal Mail chief could be set for bumper pay increase
Royal Mail chief executive Moya Greene could be in line for a near £1 million pound pay hike after the company tabled proposals to change its pay structure.
Under the new policy, detailed in the firm's annual report, Ms Greene's total pay packet could rise to a maximum of £2.4 million. Ms Green was paid £1.5 million last year.
On a like for like basis, the maximum amount Ms Green can be awarded has risen by £581,000, from £1.8 million to £2.4 million.
The increase is linked to the introduction of a deferred share element in the company's executive pay structure. Overall, the pay deal would consist of a base salary, annual bonus, a deferred share award and a long term incentive plan.
Orna Ni‑Chionna, chair of Royal Mail's remuneration committee, said: "We want to create a reward structure that appropriately balances the importance of short‑term delivery with the creation of long‑term sustainable value."
Shareholders will vote on the pay plan at Royal Mail's AGM in July.
Under Ms Greene, the 500-year-old company - which was privatised in 2013 - has embarked on an ambitious cost-cutting drive, reducing its headcount by 3,500 last year.
Last month, Royal Mail said full-year pre-tax profits slumped 33% to £267 million as it took a hit from transformation costs.
However, adjusted annual operating profits before transformation costs - Royal Mail's preferred measure of performance - rose 5% to £742 million.