Royal Mail staff promised bonuses

Royal Mail may be finally getting to grips with its delivery targets

Postal workers could be in line for bonuses of £1,000 when Royal Mail reports its results this week.

Chairman Allan Leighton said on Sunday it will be paying out £200m to its 200,000 workers - a sum of up to £1,000 each.

The Sunday Telegraph said the Royal Mail will disclose operating profits of £530m, compared to the losses of £1m a day it had in 2002.

This could trigger a bonus of about £2m for chief executive Adam Crozier.

Three years ago the Royal Mail was worth zero, today it is worth around £5bn Allan Leighton, Royal Mail chairman

The Sunday Telegraph reported that Mr Leighton had told senior ministers he wanted to borrow more than £2bn from the City to acquire 51% of Royal Mail to be held as shares for the benefit of employees.

This unusual approach is thought to be designed to reduce opposition from trade unions.

Such a purchase would value the Royal Mail at about £4.5bn.

More surprising, perhaps, is the paper's suggestion that the Royal Mail will this week show it is more than meeting its target for delivering 92.5% of first class letters by the next day.

Mr Leighton said on Sunday: "Three years ago the Royal Mail was worth zero, today it is worth around £5bn and the quality of service to customers is the best in 10 years.

"That is why the profits we will announce will trigger a share in success payment of more than £200m to postmen and women."

Bonus bonanza?

Adam Crozier, Royal Mail chief executive and former chief executive of the Football Association, was paid between £2.7m and £2.9m last year, according to the Sunday Times.

A large bonus is said to have been triggered when Royal Mail's operating profits exceeded £400m.

Previously, Mr Crozier received a basic salary of £500,000 plus a bonus of £300,000.