LONDON: In a revelation that has angered unions and politicians alike, Britain's state-owned Royal Mail paid ceo Adam Crozier over £3 million ($5.94m; €3.77m) in 2007 despite the monolith's recent admission that it is in financial crisis.
Earlier this month the postal and parcels giant posted a loss of £279m for 2007 – twenty-eight times higher than the previous year's deficit of £10m.
According to a Royal Mail statement, Crozier had "exceeded expectations and met all the targets set for him". Which begs the question: What was the postal service expecting? Armageddon?
Comments Billy Hayes, general secretary of the Communication Workers Union: "Royal Mail has just claimed it is in financial crisis, that employees are overpaid and is trying to reduce the pension benefits of its staff. At the same time as this, executive pay is completely out of control."
While Sarah Teather, Liberal Democrats business spokeswoman, implanted the political boot. Such large bonuses in a year when 2,500 post offices are to be closed as a cost-cutting measure was "absolutely obscene", she opined.
"It's hard to understand the justification for such staggering amounts when the Royal Mail's finances are in such a mess."
Crozier, a former joint-ceo at Saatchi & Saatchi London (with Tamara Ingram), later served a controversial term as chief executive of the Football Association before being despatched to the departure lounge.
In 2003 he was recruited by Royal Mail chairman Alan Leighton – a former supermarket boss – to fill the Royal Mail hot seat.
Data sourced from Financial Times; additional content by WARC staff