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.