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Royal Mail chair resigns after shareholder pay revolt Royal Mail chair resigns after shareholder pay revolt
(about 2 hours later)
The chair of Royal Mail, Peter Long, has stepped down after one of the biggest executive pay revolts by investors in UK corporate history. The privatised postal service operator said Long had reviewed his board roles and decided to focus on his role as executive chair of the estate agent Countrywide. The chair of Royal Mail, Peter Long, has stepped down after one of the biggest executive pay revolts by investors in UK corporate history. The privatised postal service operator said Long had reviewed his board roles and decided to focus on his position as executive chair of the estate agent Countrywide.
Royal Mail said Long had concluded it was no longer possible for him to remain executive chair of Countrywide and non-executive chair of Royal Mail. Royal Mail said Long had concluded it was no longer possible for him to remain as the executive chair of Countrywide and the non-executive chair of Royal Mail.
Long, who has served as non-executive chair of Royal Mail for the last three years, has been replaced by Les Owen, a board member, with immediate effect. Owen is a former chief executive of the insurer Axa Sun Life. Long, who has served as non-executive chair of Royal Mail for the past three years, has been replaced by Les Owen, a board member, with immediate effect. Owen is a former chief executive of the insurer Axa Sun Life.
Royal Mail will hope the boardroom reshuffle will placate angry investors. In July nearly three-quarters of the investors refused to support the pay package handed to the company’s new chief executive, Rico Back. Royal Mail will hope the boardroom reshuffle will placate angry investors. In July nearly three-quarters of the investors refused to support the pay package given to the company’s new chief executive, Rico Back.
Back was awarded an annual deal worth up to £2.7m if he reaches bonus targets, on top of a £6m “golden hello” for leaving the company’s European subsidiary.Back was awarded an annual deal worth up to £2.7m if he reaches bonus targets, on top of a £6m “golden hello” for leaving the company’s European subsidiary.
Trade union bosses warned that postal workers would be furious at seeing such lavish awards just months after they agreed to cuts to their pensions to help the company save money. Trade union bosses warned that postal workers would be furious at seeing such lavish awards only months after they agreed to cuts to their pensions to help the company save money.
Long, who is also deputy chair of the travel group Tui, has faced accusations of “over-boarding”. He stepped up to become executive chair of Countrywide in January after the UK’s largest estate agent issued its second profit warning in three months and ousted its chief executive Alison Platt. Long, who is also the deputy chair of the travel group Tui, has faced accusations of “over-boarding”. He stepped up to become the executive chair of Countrywide in January after the UK’s largest estate agent issued its second profit warning in three months and Alison Platt resigned as chief executive.
Countrywide, which operates under 50 or so brand names, including Hamptons International and Bairstow Eves, also faced a pay rebellion in August. It responded by scrapping a pay plan that could have handed its top executives, including Long, more than £20m.Countrywide, which operates under 50 or so brand names, including Hamptons International and Bairstow Eves, also faced a pay rebellion in August. It responded by scrapping a pay plan that could have handed its top executives, including Long, more than £20m.
Owen’s appointment may raise some eyebrows, as he has been on the Royal Mail board since 2010. The UK corporate governance code states that where a director has served on a company board for more than nine years a clear explanation must be provided. Owen will receive an annual fee of £300,000, the same as his predecessor. Long will not get a payoff from Royal Mail. Owen will receive an annual fee of £300,000, the same as his predecessor. Long will not get a payoff from Royal Mail.
Owen’s appointment may raise some eyebrows because he has been on the Royal Mail board since 2010. The UK corporate governance code states that where a director has served on a company board for more than nine years a clear explanation must be provided.
Royal Mail said: “Les’s deep knowledge of our business means he is very well-placed to be our chairman … At present the board envisages Les remaining as chair for 12-18 months, which will give us plenty of time to refresh skills on the board and line up Les’s successor.”
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