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From: Hollinrake, Minister (BEIS)
Sent: 23 January 2023 08:53
To: Secretary Of State (Grant Shapps); Permanent Secretaries
Cc: Hollinrake, Minister (BEIS)
Subject: FW: OFF SEN PERSONAL: FOR APPROVAL: POL CEO pay sub follow up advice
Attachments: 20230110 OS PERSONAL POL CEO pay follow up advice vFINAL.docx
Hi Andrew,
Minister Hollinrake’s comments:
Happy with all the recommendations on Nick Read pay
The £30k bonus is a relatively small sum but it is always controversial to try and claim
something back. In the context of a much smaller pay increase than the Chair was looking
for I think we should let him keep it but perhaps Carl could make sure that we have done
this as a gesture of goodwill.
Best wishes,
Cora
eB Cora Sweet
Private Secretary to the Minister for Enterprise,
Department for Markets and Small Business
Department for Business, Energy and Industrial Strategy
1 Victoria Street, London, SW1H OET
Business, Energy
& Industrial Strategy
From: Rajeswaran, Siv - UKGI
Sent: 20 January 2023 13:46
To: Secretary Of State (Grant Shapps) ; Gourlay, James - UKGI
Creswell, Carl (Business Sectors - Services Directorate:
Kennedy, Benjamin - UKGI
Permanent Secretaries
Hollinrake, Minister (BEIS)
; Baird, Ed (Business
7
Cc: Bickerton, David (Business Sectors DG Office); _
ice) <
Brooks-White (Jobshare) ¢
Sectors - Services Directorate)
Arasaratnam, Roshana - UKG
Subject: RE: OFF SEN PERSONAL: FOR APPROVAL: POL CEO pay sub follow up advice
Also looping in BEIS Permanent Secretary's Office.
From: Rajeswaran, Siv - UKGI
Sent: 20 January 2023 13:39
jourlay, James - UKGI
Hollinrake, Minister (BEIS)
Baird, Ed (BEIS)
1
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D ROVAL: POL CEO pay sub follow up advice
Importance: High
Hi Andrew,
Further to your request below, please see attached for requested follow up advice on POL CEO pay. This
advice has been cleared by the Permanent Secretary.
Following SoS’s meeting with Henry, Senior BEIS and UKGI Officials have discussed the pay issue with him
again. He recognises the political considerations that SoS raised and is no longer expecting approval of the
full proposal; he would, though, still like to see a retention bonus and a small pay increase for the CEO. He
is particularly anxious about not asking Nick to repay the £30k which is a deserved bonus that was properly
approved within POL. We are recommending we do not ask Nick to return this as doing so is likely to drive
active ill-will from the Chair and CEO (as opposed to just disappointment around overall pay levels, which
is an inevitable part of their public sector roles).
Thanks again for all your help with this. Please let me know if any questions.
Best,
Siv
Siv Rajeswaran I Manager
UK Government Investments
London, SW1H OET
www.ukgi.org.uk
Follow on Hi
From: Secretary Of State (Grant Shapps) GRO b>
Sent: 09 January 2023 21:0:
To: Gourlay, James - UKGI
Post Directorate) ¢__ J
Ce: Bickerton, David (Business Sectors DG Office) I. }; Hollinrake, Minister (BEIS)
ee — i } Baird, Ed (BEIS)
Arasaratnam, Roshana - UKGI
Rajeswaran, Siv - UKGIi_
OL CEO pay sub
HiJames,
Thanks very much for this, and Carl for joining.
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As discussed, the action from this meeting is for follow-up advice on the CEO retention/pay issue in the round.
Expect SoS will view the bonus more favourably than big pay increase — but (as below) do think we need to make
clear difference between this and pay within an ALB. @Creswell, Carl (Business Sectors - Services Directorate) Could
I please ask for that by the end of next week?
Attendees: SoS, Henry, Jess Webb, Carl Cresswell, Andrew Crawford
Readout:
- Henry started setting out the scale of some of the challenges with POL: Horizon, legal issues, industrial
action. He was strong here.
- SoS asked about the structure and original privatisation of Royal Mail
- Henry then spoke about areas for the business to focus on, had an exchange on cash (growing share of
declining market) and the possibility of breaking with Royal Mail and the need to be competitive
- They spoke about the local importance of Post Offices, Henry said 25+ per constituency and SoS mentioned
one had closed in his but surprisingly no casework. Regardless SoS keen to POL to continue with current
approach to ensuring network maintained and gave clear steer on that.
- Henry talked about need to make life attractive for postmasters, survey showing 33% planning to leave in
next 3-4 years
- They then moved on to talk about recruitment challenges and how he wanted to build his team — Henry
talked about NED recruitment and difficult attracting top quality people.
- S0S asked about Nick and CEO pay. They went through the 30K bones and the proposed increase in pay,
Henry firm in defending the need for it but SoS kept returning to ask how he could stand in parliament and
defend that kind of salary and increase in the context of the rest of public sector pay [/ think we need to
make clear for him in next advice the difference between POL situation and an ALB — don’t think this has
landed).
- Henry spoke about the importance of Nick to the business, challenge if he left now, and emphasised the
bonus in particular as something that would cause particular ill will if repaid
- SoS still reluctant and asked about skills you needed — Carl came in to say retail background was criterion.
Henry talked about other offers that would be coming Nick’s way.
- Don’t think there was much movement on SoS position on headline pay but maybe slightly softer view on
the bonus. He also asked about DfT and BEIS NEDs (which he thinks good) and whether any could be
candidates for POL. I’ve passed SoS henry’s number as requested.
Best wishes,
Andrew
From: Gourlay, James - UKGI
Sent: 06 January 2023 11:16
GRO
4 SpAds Office (Private Office)¢__ GRO.
Sectors - Services Directorate}. RO J; Brooks-White (Jobshare)
}; Rajeswaran, Siv - UKGI
Arasaratnam, Roshana - UKGI
Hi Andrew
Please find attached briefing for SoS meeting with the POL Chair, Henry Staunton on Monday. Do let me know if
there is any further which would be useful.
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The origin of this meeting was the CEO pay issue. However, Henry will reflect on the extent to which he raises this
with SoS in light of his meeting with Sarah yesterday. The CEO pay issue has therefore been downgraded to ‘if
raised’.
@Creswell, Carl (Professional Business Services, Retail & Post Directorate) would like to join the meeting if possible —
please could you advise and share the invite with him if appropriate?
All the best
James
From: Putt, Lily - UKGI
Sent: 04 January 2023 16:06
To: Gourlay, James - UKGI
Cc: Carpenter, Annie - UKG
Subject: FW: FOR APPROVAL: POL CEO pay sub
Hi James,
Hope you're well.
In Siv’s absence, passing on the email below from the SoS’s office. This may help with the briefing note.
Please do let me know if you need me to do anything in the meantime.
Many thanks,
Lily
Lily Putt (she/her) I Project Support Officer
UK Government Investments
1 Victoria Street, London, SW1H OE
www.ukgi.org.uk
Follow on
Sent: 04 January 2023 15:58
To: Rajeswaran, Siv - UKGK.
i; Alexander,
Ce: Putt, Lily - UKGI
Creswell, Carl (Professio!
RE: FOR APPROVAL: POL CEO pay sub
Hi Siv,
Adding policy team and Minister Hollinrake’s office —
It would be good to include general introduction, and get a sense of Henry’s priorities, his plans for the company,
before moving onto the pay issue.
Best wishes,
Andrew
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From: Secretary Of State (Grant Shapps)
Sent: 22 December 2022 1
To: Rajeswaran, Siv - UKGI
Cc: Putt, Lily - UKG
Subject: RE: FOR APPROVAL: POL CEO pay sub
“GRO ~}
Hi Siv,
Let me check and come back on that — for now would plan for general intro, probably quite quick, and then onto this
topic.
Best wishes,
Andrew
Sent: 22 December 2022 12:15
To: Secretary Of State (Grant Sh.
Ce: Putt, Lily - UKGI {GRO
Subject: RE: FOR APPROVAL: POL CEO pay sub
Hi Andrew,
Thanks a lot for confirming.
Noting that this will be the first time that SoS will be meeting the new Chair, was there anything else that the SoS
would like on the agenda other than CEO pay?
If you can confirm — we will ensure those agenda points re also covered in the briefing.
Thanks again for all your help.
Best,
Siv
Siv Rajeswaran I Manager
UK Government Investments
a_Street, London, SW1H OET
1 Vig
www.ukgi.org.uk
Follow on in}
Sent: 22 December 2022 1.
To: Rajeswaran, Siv - UKGI
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Cc: Putt, Lily - UKGIE”
Subject: RE: FOR APPROVAL: POL CEO pay sub
Hi Siv,
We've reached out to Henry, yes.
It’s provisionally gone in for 9 January — could I please ask for a briefing for it for 1200 on Friday 6"?
There is a chance it may move back because of international travel unfortunately but will keep you posted.
Sent: 20 December 2022 15:01.
To: Secretary Of State (Grant Shapps.
Ce: Putt, Lily - UKGI
Subject: RE: FOR APPROVAL:
Hi Andrew,
Hope you are well. We were just wanting to check in on the status of whether the conversation with Perm Sec on
CEO pay has taken place, and whether the Office has reached out to Henry for a meeting.
If so, we would be grateful for confirmation of the meeting date. Please let us know if SoS would require a briefing
note in advance of the meeting.
Best,
Siv
Siv Rajeswaran I Manager
UK Government Investments
4 \fistaria-Stzaot..ondon, SW1H OET
M: ‘0
www.ukgi.org.uk
Follow on Ei
From: Secretary Of State (Grant Shapps) 1.
Sent: 05 December 2022 19:08
To: Rajeswaran, Siv - UKGI
Post Directorate)!
Minister (BEIS)
Ce: SpAds Office (Pri
; Stockbridge, Rebecca (BEIS)
SoS and Minister Hollinrake have reviewed.
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SoS is not happy to approve this. He would like to discuss with the Chair, and would like to cover in next 1:1 with
Sarah @Permanent Secretaries.
Will reach out to Henry once that conversation has happened.
Best wishes,
Andrew
Andrew Crawford I Senior Private Secretary to the Secretary of State I Mo
From: Rajeswaran, Siv - UKG
Sent: 29 November 2022 15: ,
I Secretary Of State (Grant
Hollinrake, Minister
7 Brooks-White
3; Stockbridge, Rebecca
Importance: High
Hiall,
Further to the below, please now find attached UKGI and BEIS advice on the letter from Henry Staunton on POL CEO
pay.
The attached advice has been cleared by Permanent Secretary.
Please let me know of any questions.
Best,
Siv
Siv Rajeswaran I Manager
UK Government Investments
1 Vie
reet, London SW1H OET
www.ukgi.org.uk
Follow on in}
From: Creswell, Carl (Business Sectors - Services Directorate)
Sent: 14 November 2022 16:34 .
To: Secretary Of State (Grant Shapps)!
P; Hollinrake, Minister (BEIS) ;
7
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Ce: SI
Ads Office (Private Offic I Permanent Secretaries
~S Bickerton, David (Business Sectors DG Office)
; Rajeswaran,
Siv - UKGI}
GRO ee }>; Fitzherbert, Louis
eath, Daniel (BEIS)
Pi
(Corporate Services - Communications)...
Subject: RE: FOR APPROVAL: POL CEO pay sub
Hi Andrew,
The sub you have relates to a contained issue relating to pay for 21/22, so I would be grateful if you could
put that in for SoS review now, please.
This letter is about the CEO’s pay going forward and we and UKGI plan to advise on it separately. We
don’t want to hold up dealing with the 21/22 issue now, since a decision is required for POL’s
accounts. The forward-looking ask will require separate consideration.
Thanks,
Carl.
aw Carl Creswell
Director, Business Resilience
Department for Tell GRO
Business, Energy
In trial Str; Orchard 2, 1 Victoria Street, London SW1H OET
& Industrial S ategy www.gov.uk/beis I https://twitter.com/beisqovuk
From: Secretary Of State (Grant Shapps);
Sent: 14 November 2022 1
To: Gourlay, James - UKGE
lollinrake, Minister (BEIS)
GRO. "}; Permanent Secretaries
‘Bickerton, David (Business Sectors DG Office)
Creswell, Carl (Business Sectors - Services Directorate)
‘asaratnam, Roshana - UKGI <_
UKGI <, GRO _______..$; Brooks-White (Jobshare
ie Stockbridge, Rebecca (BEIS)
(Corporate Services - Communications) {
Finance) {_ i
Rajeswaran, Siv -
Cooper, Tom - UKGI
>; Fitzherbert, Louis
; Heath, Daniel (Corporate Services -
OL CEO pay sub
Hi James, all —
PSA a letter we've just had in from Henry Staunton.
Can you pls let me know any reflections asap — the sub on ceo pay is going to SoS in the next half an hour.
Best wishes,
Andrew
Andrew Crawford I Senior Private Secretary to the Secretary of State I Mo
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From: Gourlay, James - UKGI ¢
Sent: 10 November 2022 15:29 1
To: Secretary Of State (Grant Shapps): GRO Hollinrake, Minister (BEIS)
i GRO
Cc: SpAds Office (Private Office) i GRO. ; Permanent Secretaries
i GRO. ‘}Bickerton, David (Business Sectors DG Office)
>; Creswell, Carl (Business Sectors - Services Directorate)
Arasaratnam, Roshana - UKGI { GRO }; Rajeswaran, Siv -
UKG “p; Brooks-White (JobshareI H GRO ; Cooper, Tom - UKGI
>; Stockbridge, Rebecca (BEIS)! GRO ; Fitzherbert, Louis
(Corporate Services - Communications). GRO >; Heath, Daniel (Corporate Services -
Finance): GRO
Subject: FOR APPROVAL: POL CEO pay sub
Dear Private Offices of Secretary of State and Minister Hollinrake
Please find attached a submission on the pay of the Post Office CEO. Ideally we need a decision by next Wednesday
please if possible or close to that.
Do let me know if you have any questions.
All the best
James
James Gourlay I Assistant Director
UK Government Investments
www.ukgi t uk
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