Royal Mail parent CEO pay rises to £6.9m as profits fall 20%
9 reported
Martin Seidenberg, group chief executive of International Distribution Services (IDS), received £6.9m in pay and bonuses for the year to 31 March, more than triple the £2.1m from the previous year. The increase came despite group adjusted operating profits falling by 20% to £222m. IDS attributed the pay rise to the £3.6bn takeover by Czech billionaire Daniel Křetínský, which triggered the vesting of incentive awards and share-based bonuses. The company’s annual report, published on Tuesday, stated that the vesting of awards was accelerated at the point of takeover. Total executive director pay more than doubled to £9.8m, while revenues rose 3.6% to £13.6bn and operating costs increased by £629m to £13.4bn. IDS blamed higher costs on increased wages and employer national insurance contributions. Royal Mail parcel volumes grew 7% to 1.4bn, while letter volumes fell 10% to 5.7bn. Ofcom launched another investigation into Royal Mail for missing delivery targets, and the company was late delivering nearly a quarter of first-class mail.
What’s reported
Martin Seidenberg’s pay package rose from £2.1m to £6.9m year-over-year.
IDS adjusted operating profits fell 20% to £222m in the year to 31 March.
The pay increase was due to the £3.6bn takeover by Daniel Křetínský, which accelerated vesting of awards.
Total executive director pay rose from £4.2m to £9.8m.
Revenues increased 3.6% to £13.6bn; operating costs rose £629m to £13.4bn.
IDS blamed cost increases on higher wages and employer national insurance contributions.
Royal Mail parcel volumes grew 7% to 1.4bn; letter volumes fell 10% to 5.7bn.
Ofcom launched a new investigation into Royal Mail for missing delivery targets.
Royal Mail was late delivering almost a quarter of first-class mail in the year to end of March.
Key figures
Martin Seidenberg, group chief executive of International Distribution Services (IDS)
Daniel Křetínský, Czech billionaire who led the takeover via EP Group
Sources: The Guardian
