Royal Mail’s Chief Executive Adam Crozier’s £3 MillionPay Package

Royal Mail Groups audited accounts were published late Friday afternoon, drawing attention to the fact that Adam Crozier's basic annual pay of the Chief Executive was in excess of £1 million. In addition, the Chief Executive received a bonus of nearly £400,000. 

Furthermore, press reports claim that the pay, bonus and pension package, in total, is close to £3 million. 

The CWU have issued a press release condemning the Chief Executive’s pay package as obscene. At a time when postal workers’ pensions are being destroyed and the company is facing huge challenges, there can be no justification, whatsoever, for this level of reward.

Billy Hayes, general secretary, said: “Royal Mail has just claimed that it is in financial crisis, that employees are over paid and is trying to reduce the pension benefits of its staff. At the same time as this, Executive pay is completely out of control.

This is an outrageous use of public money at a time when post offices and other Royal Mail offices are closing and postal services are being cut back. Adam Crozier is again being rewarded for managing decline instead of improvement in the company.

This is massive insult to Royal Mail employees and the public.”

Dave Ward, deputy general secretary, said:

“The actions, wages and misjudgements of Royal Mail management demand closer scrutiny. They’ve got a business plan that’s in crisis, they’re always shifting the blame and yet they reward themselves with obscene amounts of money.

“Crozier should take a leaf out of Willy Walsh’s book and forego his bonus in a year when the company has been in financial and operational difficulties. Rewarding the misjudgements of Executives like this is a public scandal that they should not be allowed to get away with.”

In the meantime amongst many press comment is this from the Daily Mail website which details the histroy of major failings of the post office boss:

"Over the last year, he has presided over:

•  The closure of 2,500 post offices, ripping the heart out of villages, towns and cities.
• The first national strike for more than a decade.
• The 'one-price-goes-anywhere' universal stamp service losing money for the first time, haemorrhaging more than £100million."

The same article adds further detail of Adam Crozier's pay package:

" The annual report reveals Mr Crozier's basic salary is £633,000  -  but this is only the beginning. He also got a performance-related bonus of £190,000, a 'cash supplement' in lieu of a pension payment of £208,000 and benefits of £20,000.

The icing on the cake is £1,993,000 from a long-term incentive plan payment,
accrued over a three-year period and linked to performance.

This brings his total pay package to £3.04million for 2007/08  -  about 180 times a typical postman's salary of £17,000.

In a further coup for Mr Crozier, the report shows his gold-plated pension is currently worth £1.2million."

Royal Mail chairman Allan Leighton, who was paid £200,000, is quoted as saying Mr Crozier is worth every penny:

Asked about the long-term incentive plan, he said: "The payment covers three years during which the group, led by Adam and the team, has consistently exceeded expectations and met all the targets set by the shareholder  -  and that's against a backdrop of a declining overall mails market, accelerating competition and a pension fund that consumes around £800million a year in cash."

Daily Mail full article

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