Fat cat pay is hurting Royal Mail, claim MPs: Postal service boss to be dragged before Parliament amid salary backlash
- There has been major backlash over high salaries of Royal Mail executives
- New German chief executive has been offered a £5.8million ‘golden hello’
- Head of remuneration panel Orna Ni-Chionna for firm has five other jobs
Bosses at Royal Mail were last night accused of trashing the reputation of the company amid a furious row over fat-cat pay.
The postal service has faced a backlash over a bumper deal for new chief executive Rico Back and the golden goodbye handed to his predecessor, Dame Moya Greene.
There has been particular criticism of part-time director Orna Ni-Chionna, who is chairman of the remuneration panel that agreed the pay deals but holds five other jobs.
MPs on the powerful business select committee have now written to Miss Ni-Chionna, 62, questioning her about pay at Royal Mail.
She is likely to be hauled before Parliament to answer further questions after the summer holiday.
Royal Mail’s part time director Orna Ni-Chionna (pictured) is likely to be hauled before Parliament to answer further questions on fat cat salaries at the firm after the summer holiday
Rachel Reeves, chairman of the Commons committee, said: ‘At a time when there are ever louder criticisms of hikes in executive pay, it seems incredible that the remuneration committee chair would sign off on such a pay deal.’
She said there was ‘bound to be reputational damage’ from the row.
Royal Mail approved a £5.8million windfall for German Mr Back before he took charge last month, having run the company’s European parcel business GLS.
Miss Ni-Chionna’s pay panel also signed off Mr Back’s £640,000-a-year salary, which is 17 per cent higher than that of his predecessor and could reach £2.7million through bonuses and other awards.
And on her departure, Dame Moya was handed a cash bonus of £774,000 and a year’s salary of £547,500.
The extent of Mr Back’s pay – and his plans to remain in Switzerland rather than relocate to the UK to run Royal Mail – have been exposed by the Daily Mail.
Royal Mail said: ‘We have worked hard to take a highly responsible approach to executive pay.’
The postal service has faced a backlash over a bumper deal for new chief executive Rico Back and the golden goodbye handed to his predecessor, Dame Moya Greene. File image used