A share in success on the way to everyone in Royal Mail Group
Everyone in Royal Mail Group will get a share in the future success of the company worth at least £800 if the Group hits targets in its renewal plan, Chairman Allan Leighton announced today.
“The ‘Share in Success’ scheme will – for the first time – give everyone a real stake in the business,” said Mr Leighton. All UK employees with at least 12 months’ service at the time of payout will be eligible.
No financial investment is required but a dividend of £800 will be paid if Royal Mail Group makes a £400 million profit in the 2004/2005 financial year.
Higher sums, up to £1,000, will be paid, if more profit is made. Mr Leighton said he intended all employees to get a financial “Share in Success” as an annual benefit in future years.
The scheme is launched on the day that Royal Mail Group announced a trading loss of £147 million for the first half of the current financial year, equivalent to a loss of £1.1 million every working day.
But Mr Leighton said: “I’m confident we can make this company great again. We’ve stopped sinking and turning a £1.1 million a day loss into a £1.5 million a day profit – a £400 million annual operating profit– is going to be tough but it can be done.
“It’s a realistic target. The company was making that sort of profit just three years ago and we can do it again. It will mean making a profit of around 5 to 7% on turnover. That’s achievable.
“People in the company feel demoralised and I can understand why. But everywhere I go, I’m also struck by the enthusiasm and commitment of our people to provide the services on which the whole country depends. It’s the enthusiasm and commitment of our people that will make the difference between success and failure,” said Mr Leighton.
“Many people in the company around the country have asked me how they can take a personal stake in the company. The ‘Share in Success’ scheme is designed to do just that.”
Some 200,000 “Share in Success” certificates are being posted over the next few days to employees.
Ends
Issued by Royal Mail Group plc: 020 7250 2468 (24 hours)
148 Old Street
LONDON
EC1V 9HQ
www.royalmail.com/group
