Royal Mail chief to get no pay rise this year

Royal Mail's chief executive officer Moya Greene will not get any pay increase this year, the postal company's remuneration committee has declared.

Ms. Greene pocketed a pay package worth around £1.5 million in the financial year 2012-13, considerably up from £1.1 million in the prior period. The package included a base salary of £498,000, while the rest was made up with bonus payments, pension contributions, and other benefits like medical insurance.

The postal company's remuneration committee decided to offer no pay rise to her this year, despite Chairman Donald Brydon's open admittance that she could leave the company and go elsewhere due to insufficient pay package.

However, the remuneration committee claimed that it had taken into account the views and wishes of Ms Greene before freezing her basic salary.

Announcing the decision, it said in a statement, "The remuneration committee. has decided not to propose any base pay increase or new incentive arrangements for the chief executive officer. In doing so, the committee has taken into account the views and wishes of the CEO."

The average salary among FTSE 100 CEOs is £4.2 million. Even Ms Greene's predecessor Adam Crozier had received £2.4 million back in 2010.

The British Government had floated Royal Mail onto the London Stock Exchange (LSE) at an offer price of 330p a share in October 2013, on the advice of Goldman Sachs, Lazard and UBS. But, the stock jumped quickly after the floatation, prompting Labour leaders like Ed Miliband to criticize the government for selling the company at a too low price.

British Government still owns a 30 per cent stake Royal Mail.