Royal Mail chief in line for almost £1.6m pay for last year

Royal Mail is steeling itself for a storm of protest from the Communication Workers Union following reports that the business is to reveal its chief executive was paid almost £1.6m last year.

Moya Greene, the Canadian-born boss of Royal Mail, earned £1.1m in 2011, but her 2012 pay package is expected to be nearly £500,000 higher thanks to an additional long-term incentive plan.

The issue is sensitive because the union is at war with management over plans to privatise the business after a long period when many postal workers have lost their jobs. Last week, the CWU revealed that more than 96% of postal workers who voted in a ballot opposed the selloff despite being promised about £1,500 in shares each as part of a flotation plan.

Royal Mail declined to comment on the speculation that Greene's payout would rise by more than 40% over the 12 months, saying it would be disclosed in the state company's yearly financial roundup.

"Executive remuneration will be disclosed in the usual way in our annual report and accounts. Awards (bonuses and long-term incentive payments) are only made following the delivery of stretching and sustainable performance," it said.A spokeswoman declined to say when the accounts would be published, or whether they would reveal any increase in Greene's basic salary, which was worth around £500,000 in 2011. On top of this, Greene earned a bonus of £370,000, £200,000 in lieu of pension, and additional "benefits" of nearly £40,000.

A long-term incentive payment based on her performance over three years would boost 2012 figures by £480,000 – if as expected the maximum is paid out. That tranche would not formally "vest" or be handed over until spring 2014. Greene, who took over in 2010, is still some way behind her predecessor, Adam Crozier, who made £2.4m in his last year in charge.

A statement from Royal Mail said: "Royal Mail has been transformed by Moya Greene in the last three years. The business was loss-making and balance sheet insolvent. Now, all our businesses are profitable and the UK is our strongest performer."