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theguardian.com 1 months ago URGENCY: 5/10

Royal Mail CEO's Pay Triples Amid Profit Decline

Royal Mail's CEO Martin Seidenberg saw his pay package soar to £6.9m despite a significant drop in profits. Discover the implications of this controversial compensation amidst ongoing regulatory scrutiny.

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Royal Mail CEO's Pay Triples Amid Profit Decline

Royal Mail's Financial Struggles

Despite a £6.9m pay package for CEO Martin Seidenberg, Royal Mail is grappling with a 20% decline in adjusted operating profits. The company reported a modest profit increase in its Royal Mail division, but overall performance has been hindered by rising costs and regulatory challenges.

  • Key financial highlights include:
  • Adjusted operating profits fell to £222m.
  • Total operating costs surged by £629m to £13.4bn.
  • Parcel volumes increased by 7%, while letter volumes dropped by 10%.
The recent £3.6bn takeover by Czech billionaire Daniel Křetínský has led to significant changes in the company's structure and compensation policies. As Ofcom investigates Royal Mail for missing delivery targets, the juxtaposition of executive pay and company performance raises questions about accountability and corporate governance.
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