Socialist Worker

Secret bonuses for Royal Mail bosses - paid millions to wreck post

Issue No. 2063

Top Royal Mail bosses are getting huge bonuses—but they don’t want us to know how much. Details of top salaries and bonuses will be included in Royal Mail’s annual report that was due out in May—but still has not been published.

We can guess at the likely handouts. It was leaked to the Sunday Times last week that post office managing director Alan Cook is in line to receive a bonus of up to £1 million if he pushes through the closure of 2,500 post offices on time.

He will be entitled to a bonus of up to 80 percent of his £250,000 salary every year until 2011. He also receives at least £50,000 a year as a “lump sum” in lieu of a pension, because his pension savings are already so large.

Two months ago it was reported that Royal Mail chief executive Adam Crozier received a £370,000 bonus on top of his £615,000 salary for the last financial year.

The bonus received by Royal Mail chairman Allan Leighton is still a secret, but we do know that in 2004 he was handed £2.2 million on top of his £814,244 salary.

Whatever the bonus he has been handed by Royal Mail, the former Asda boss is unlikely to be left short of cash.

Leighton collected £80 million when Wal-Mart bought Asda in 1999. And he can always fall back on his other interests – he is a director at several other companies, including media giant BSkyB.

While Royal Mail may be keeping top bosses’ pay under wraps, a number of other statistics are on general release – the threat of 40,000 job losses, 2,500 post office closures and the imposition of a below inflation 2.5 percent pay “rise” for 130,000 post workers. This has led to solid strikes by post workers in the CWU union.

Dave Wilshire, a CWU branch official from Bristol, told Socialist Worker, “Crozier and Leighton preach dignity and respect in the workplace, but the style of management they impose is far from that—it’s a recipe for ­bullying and harassment.

“Leighton likes to pretend that he’s a man of the people—but he’s shown that he doesn’t know anything about how working people live. People have seen through him.”


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News
Wed 8 Aug 2007, 19:58 BST
Issue No. 2063
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