Two most powerful men at Royal Mail running service from their homes on Continent during coronavirus crisis
The two most powerful men at Royal Mail have been running the crucial service from their homes on the Continent during the coronavirus crisis.
Chief executive Rico Back and operating chief Achim Dunnwald are understood to be working from Switzerland and Germany respectively, having left the UK after the lockdown.
Critics yesterday claimed German executive Back, dubbed ‘the Flying Postman’ because he commutes to Britain, was too far away to effectively run the company and called for him to resign.
Tough at the top: Chief executive Rico Back (pictured) left the UK after the coronavirus lockdown
Back, 66, is working from his £2.3m family home, a luxury penthouse overlooking Lake Zurich. The father-of-four, who took over as Royal Mail boss two years ago, usually travels by air to the UK for the working week and returns to the property during weekends.
But after the postal service’s London office was shut on March 24, it is understood Back returned to Switzerland and has remained there.
He took over as group boss from Dame Moya Greene in 2018, receiving £6m for changes to his contract. He was paid £647,000 last year but can earn up to £2.7m. Critics have questioned whether he could effectively run Royal Mail, which employs 140,000 staff, while being partly based abroad.
Back and Royal Mail have defended the arrangement, saying he would be in the UK every week or ‘as and when requested’.
He flies to the UK covers the costs himself, including those of his London accommodation. It is understood that he has been keeping in regular contact with colleagues, including chairing daily meetings on the crisis. Dunnwald, who was made chief operating officer this month, is working from his native Germany.
Yesterday it emerged that Royal Mail has yet to cut executive pay, despite cancelling its full-year dividend. It is understood the pay committee will soon review the matter.
Terry Pullinger, deputy general secretary of the Communication Workers Union (CWU), which represents twothirds of staff, said: ‘No other national postal service would have handed the keys to such a domestically-focused public service to someone who lives in a different country.
‘His £6m golden hello and annual reward package was, and still is, a disgrace. He must go before this vital service, which is keeping this country connected through this crisis, is lost forever. The board must act.’
Back is also currently embroiled in a row with the CWU over protective equipment given to postal workers.
As ‘key workers’ under Government lockdown rules, posties have continued their delivery rounds. The CWU says concerns raised by ‘truly scared’ staff are not being addressed. Royal Mail insists that staff have been provided with adequate protection.
It said: ‘Rico Back is leading Royal Mail’s response to the emergency. Our priorities during coronavirus are clear: protect our people, protect the country and protect our company.
‘We are working hard to deliver the most comprehensive service we can. Executive remuneration matters will be considered by the remuneration committee as part of our year-end process.’