ROYAL MAIL PARENT COMPANY CEO PAY RISES TO £6.9M AS PROFITS FALL

Martin Seidenberg, group chief executive of International Distribution Services (IDS), received a pay package worth £6.9m in the year to 31 March, more than triple the £2.1m he took home the previous year. The increase occurred despite adjusted operating profits at IDS falling by 20% to £222m over the same period. IDS said the rise in Seidenberg's remuneration resulted from the £3.6bn takeover by Czech billionaire Daniel Křetínský, which triggered the vesting of long-term incentive plan awards and share-based bonuses. The company noted that no award plans vested in the prior year. The two executive directors at IDS, including former finance boss Michael Snape, received combined pay of £9.8m, more than double the £4.2m from the previous year.

IDS owns Royal Mail and parcel delivery service GLS. Profits at Royal Mail increased to £5m from £2m year-on-year, whilst GLS reported a 17% decline in profits to £237m, attributed to regulatory changes in Italy and the impact of US tariffs on Canadian operations. Group revenues rose 3.6% to £13.6bn, though total operating costs increased by £629m to £13.4bn. IDS attributed the cost rise to higher wages, associated taxes, increases in employers' national insurance contributions and the minimum wage. People costs, including wages and salaries, rose 5.7% to £7.16bn, representing a £384m increase.

At Royal Mail, parcel volumes grew 7% to 1.4bn items, whilst letter volumes fell 10% to 5.7bn. The UK postal regulator Ofcom launched an investigation into Royal Mail earlier this month regarding missed annual delivery targets. IDS reported that Royal Mail was late delivering almost a quarter of first-class mail in the year to 31 March. The company has faced £37m in fines since 2023 for failing to meet Ofcom targets.