Tag: Royal Mail

Royal Mail bonus schemes last year netted five top executives Pounds 1.5 million, even though the organisation missed all its service targets. They are expected to get at least as much this year. In an effort to defuse controversy Allan Leighton, the part-time chairman, deferred all of his Pounds 144,000 bonus until four key targets are met. His deputy Elmar Toime said he would defer half of it until the same targets were achieved. Adam Crozier, chief executive, and three others, said they would waive the part of their bonus which comes from meeting service standards. But that element amounts to just 20 per cent of the bonus, while 80 per cent is dependent on financial targets. Royal Mail executives are rewarded on an annual basis and also through a three-year plan linked to the recovery programme.

Although Adam Crozier, Royal Mail chief executive, accepts that the public are losing patience with the poor performance of the postal service, he points out that consumers are worse off in other countries. “We have the lowest prices and the quality targets are tougher.” Among western European countries only the Netherlands and Portugal have cheaper stamp prices in the lightest category of post, and in the 50 gram bracket the UK’s price of 28p is the lowest. The cheapest stamp price in Germany is 55 cents (38p) and in France it is 50 cents (34p). Many UK customers are unhappy at the scrapping of the second daily postal delivery and the arrival of mail later in the day. But in Germany post is delivered between 9am and 2.30pm, while in the Netherlands post can be delivered as late as 5pm.