Postal workers have reacted angrily to the news that Royal Mail Group’s (LON:RMG) chief executive Moya Greene is to take a part-time job as a non-executive director of easyJet (LON:EZJ), The Times has reported. The news comes at a sensitive time for the postal operator which is trying to replace its current defined benefit pension plan with an alternative scheme.
Royal Mail’s share price lost ground in yesterday’s session, shedding 2.75 percent to close at 399.80p, and underperforming the broader UK market with the benchmark FTSE 100 index which closed 0.55 percent higher at 7,430.91 points. The group’s shares have lost just under 21 percent over the past year, and are down by some 13 percent in the year-to-date.
The Times reported that the Communication Workers Union (CWU) had condemned the appointment of Royal Mail’s CEO to easyJet’s board. The low-cost carrier said yesterday that Moya Greene would join the board immediately to support the company’s chief executive search process after the airline’s boss Carolyn McCall announced earlier this week she’ll be stepping down to take the top job at ITV (LON:ITV).
“It is extremely concerning at a time when the business is facing huge challenges that the chief executive of the company should have enough time on her hands to take another job,” Terry Pullinger, deputy general secretary of the CWU, commented, as quoted by the newspaper. “It will be equally offensive to our members that a highly paid member of the Royal Mail board and leader of Royal Mail Group is taking what one assumes is another lucrative contract whilst effectively saying to Royal Mail employees that they are overpaid, lucky to have a job and should accept imposed huge reductions in their pension promise.”
In a separate development, Investec cut its price target on Royal Mail yesterday. Sharecast quoted the analysts as saying that they were ‘very positive’ on the long-term potential for efficiencies but less so on the outlook for the company's operating margins.