Royal Mail chief executive Martin Seidenberg received a pay package worth £3.6m in the 2025-26 financial year, a 70% increase on the previous year, as the company reported a sharp rise in profits.
Pay and Performance
Seidenberg’s total compensation included a base salary of £1.1m, an annual bonus of £1.5m, and long-term incentive awards worth £1m. The pay rise came as Royal Mail’s parent company, International Distributions Services (IDS), reported a 45% increase in pre-tax profits to £418m, driven by cost-cutting and higher parcel volumes.
The company said Seidenberg’s pay was justified by the turnaround in performance, which saw the postal service return to profitability after years of losses. However, the pay package has drawn criticism from unions and some politicians, who argue that it is excessive given the company’s reliance on taxpayer-funded support during the pandemic and ongoing concerns about service quality.
Union and Political Reaction
“While the boss takes home millions, postal workers are struggling with below-inflation pay rises and poor working conditions,” said a spokesperson for the Communication Workers Union (CWU). “This is an insult to the people who actually deliver the mail.”
The CWU has been in a long-running dispute with Royal Mail over pay, jobs, and conditions, which led to a series of strikes in 2022 and 2023. The union has called for a more equitable distribution of profits and warned that further industrial action could not be ruled out if workers do not see a fair share of the company’s success.
Financial Turnaround
Royal Mail’s financial recovery has been driven by a combination of factors, including a 12% increase in parcel volumes, cost reductions from automation and network optimization, and price increases for stamps and other services. The company also benefited from a £1.8bn government loan during the pandemic, which has since been repaid.
Despite the improved financial performance, Royal Mail faces ongoing challenges, including declining letter volumes, increased competition from private couriers, and regulatory pressure to maintain universal service obligations. The company has warned that it may need to cut jobs and further automate operations to remain competitive.
Future Outlook
Looking ahead, IDS said it expects continued growth in parcel volumes, driven by e-commerce, but cautioned that the economic environment remains uncertain. The company is also exploring options to spin off its European parcels business, which has underperformed relative to the UK operations.
Seidenberg, who took over as CEO in 2023, has been credited with stabilizing the company and restoring investor confidence. However, critics argue that the focus on profits has come at the expense of service quality, with customers reporting delays and lost mail.
