Moya Greene's pay deal faces a political revolt
(City A.M. (UK) Via Acquire Media NewsEdge) MOYA Greene's pay rise could be limited to three per cent this year, if business secretary Vince Cable gets his way, it emerged yesterday.
The minister reportedly wants to cap the Royal Mail chief's raise at the same level as that of the workers in the company.
The government sold the majority of its stake in the business last October, but still holds a 30 per cent share of the firm.
As a result the Department of Business, Innovation and Skills, headed by Cable, has a major, but not binding, say in executive pay.
Royal Mail has not yet set a date for its annual general meeting nor made proposals for executive pay to shareholders.
Greene's salary of £498,000 per year, plus variable pay of around £1m, is considered relatively low for the head of such a major business.
But according to Sky News, Cable has told directors of the company he expects Greene's pay rise to be tightly restrained.
Cable's department declined to confirm or deny whether he had spoken to Royal Mail's board.
"Royal Mail has yet to put remuneration proposals to its shareholders including the government which remains the company''s largest shareholder," said a spokesperson.
"We will of course discuss proposals with their remuneration committee to understand their thinking behind any changes. We have a vote at the AGM and will decide how to exercise that vote."
(c) 2014 City A.M.
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