Royal Mail investors staged one of the biggest pay revolts in corporate history, with almost three quarters of the rejection of the compensation package handed its new chief Executive.
The postal service, privatized in the notorious trial, which began in 2013, handed Rico back annual Internet worth up to £2.7 m, if it makes bonus assignments, on top of £6m “Golden Hello” to exit the company’s European subsidiary.
Bosses of the Union designated payment believe that postal workers are angry at the sight of these generous awards distributed a few months after they adopted changes to their pensions, to help the company save money.
Ago, which is based in Switzerland and will travel from Zurich to London, will earn an annual base salary of £640,000, which is 17% more compared with the predecessor, Moya Greene.
Royal Mail said it was to compensate for lower pensions, which will be 112,000 compared with £200,000 the green, the amount the company recognized, in the past year were too high.
The company defended the agreement indicating the high performance of the leading European branch of Royal mail, GLS, but three-quarters of the votes cast at its annual meeting in Sheffield was able to return it to pay for Internet, and 70% actively opposed it.
Rebellion is considered the largest in a British public company in the last ten years, more than 64%, which failed to return £75m payout for the developer persimmon Executive Director in April, and 60% of those who rejected the former WPP boss sir Martin Sorrell’s £ 7m Internet in 2012.
The shareholder vote is merely Advisory, and the company is not required to change their payment schemes.
Investors to deliver a rebuke to Royal Mail first class pay
“It would seem that Rico ago received £6m moving from one work to the Royal mail changing life to win the lottery anyone, and an astronomical salary,” said Terry Pullinger, the Deputy Secretary-General of the trade Union of workers of communication.
“These things have departed from reality and it got to the point where it is an obscene amount of money.”
He pointed to a long dispute with the company regarding the work schedule, pay and pensions, which ended in February, when 110,000 workers – who said that three sensors were paid on average £22,500 a year – adopted changes to the pension.
“Business is constantly telling us that every pound is a prisoner and they are virtually helpless, and then you’ll see it,” he said.
“Because people feel that the business is in a difficult financial position when such money will be discussed?”
“Shareholders probably just want more, so for them to react like that, I’d probably double that in terms of what our members will think.”
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ISS and Glass Lewis, the group that advises city investors on how to vote, both urged shareholders against the deal because of an increase in basic back pay.
The ISS rose over the payments as for green, which include the full year cash bonus of £774,000 and 12 monthly salaries, cost £547,500 after it comes out in September, red flag.
Orna N-Chionna, Chairman of the Committee of the Royal mail’s remuneration, said: “we recognise and understand the reasons why our shareholders believe that they could not vote in favour”.
She said Royal Mail had “been in contact with many of them and to very carefully think about their main concern” in the autumn revision of the policy the company’s remuneration.
But the Chairman of Royal mail, Peter long, head across the country and is the Vice-Chairman of the tourism group TUI, has defended the package back, pointing to his record as a boss GLS.
“GLS has a truly big success for us,” he said.
“We bought it when we were at the post office in 1999. This is also when our new CEO, Rico is back, climbed aboard. Since then, under the dynamic and wise leadership of Rico, GLS has grown and grown.”
The company defended the payments to Greene, saying she was “an exceptional Executive and we made the right reward mechanisms to encourage shareholder value creation in the long term and to meet its contractual obligations.”
Earlier this week, Royal Mail reported a 7% drop in income letter in the last three months, with parcel delivery in the UK increased by 6%. Overall revenues in the division in the UK fell by 1%, while overall group underlying income increased by 2% due to the 11% surge in sales of GLS, running back.