Vince Cable faces political battering as Royal Mail mulls Moya Greene pay rise
Vince Cable was potentially heading towards another political battering over the flotation of Royal Mail today as the chairman said it should give its chief executive a pay rise beyond her present £1.25 million package.
Donald Brydon said because Moya Greene’s deal was negotiated under a "overnment-controlled pay structure" it was artificially low compared with other Footsie bosses. Now the business is a FTSE 100 company, it must pay her significantly more or risk losing her, he said.
However, Cable, who as Business Secretary already faced accusations of botching the privatisation by selling the postal service too cheaply, has been vocal in his criticisms of City bonus culture.
As the taxpayer, represented by Cable, is still by far the biggest shareholder, it will be up to Cable whether to approve the recommendations of the Royal Mail’s remuneration committee on Greene’s pay. If he were to approve an inflation-busting package far north of £1.25 million, he would face bruising criticisms.
Unite union’s national officer, Ian Tonks said: "Calls to boost Moya Greene’s huge salary even further is proof the rushed privatisation of Royal Mail is descending into a farce. The Government should step in and make clear it opposes this sort of corporate greed."
Given Brydon is on the remuneration committee, led by former McKinsey partner Orna Ni-Chionna, his comments were taken as a clear sign that a big pay rise for Greene, pictured, is likely.
Sources at the Department for Business, Innovation and Skills pointed that Cable had been consistent in calling for bonuses to be based on long-term performance. The board could, therefore, head off some of the embarrassment for him by creating unusually lengthy performance criteria.
- 1 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 2 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 3 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Joey Barton and Yossi Benayoun become involved in Twitter row over Israel-Gaza conflict
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Metallica drummer Lars Ulrich claims Noel Gallagher helped him kick his cocaine addiction
Peaches Geldof: Her final day – and her fatal decision
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Students offered grants if they tweet pro-Israeli propaganda
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...
£18000 - £25000 per annum + OTE £40,000: SThree: Huxley Associates are looking...