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Last Updated: Sunday, 15 May, 2005, 17:23 GMT 18:23 UK
Royal Mail staff promised bonuses
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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.


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