Royal Mail's performance results in nearly £2m bonus for Crozier

by Daniel Farey-Jones, Brand Republic 17-May-05, 07:00

LONDON - Royal Mail chief executive Adam Crozier is set to pick up a bonus of almost £2m later today when the company unveils its annual results, which are expected to show profits of around £530m.

In total, Crozier will get almost £3m, which is believed to be the largest payment ever picked up by a head of a state-owned company. His annual salary is £500,000 and he will also pick up a £300,000 cash bonus.

The additional payment is believed to relate to a long-term incentive plan forming part of the Royal Mail's concluding three-year turnaround programme. Royal Mail would not provide details of the payment ahead of its results announcement.

Responding to criticism, Royal Mail chairman Allan Leighton defended the payments to Crozier, arguing he had turned Royal Mail around.

"Three years ago this company was worth zero -- today it's worth about £5bn and quality of service is the best in 10 years.

"That's why the results we are about to announce will trigger a payment of more than £200m to our postmen and postwomen. Everyone associated with this turnaround deserves their share in success," Leighton said.

The company is set to pay out bonuses of around £1,000 to every member of staff for meeting profit targets for the year.

In 2003-2004, Crozier was awarded £664,224, incorporating basic pay, benefits and performance-related pay, and the company made profits of £220m on turnover of £8.6m.

Speculation continues that Leighton is talking with senior government ministers about giving employees part-ownership of the company as well as attempting to raise £2bn to invest in the company and plug its £2.5bn pension deficit.

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