BEIS0001167
BEIS0001167
From: White, Beth (Better Regulation
Executive )[/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8855640 151 E546E7A8CCO9E926
249CB6-WHITE, BETH]
Sent: Tue 30/07/2019 4:34:51 PM (UTC)
To: Tolhurst ] Permanent
Creswell, Carl
at Cooper, Tom -
Ce:
Subject: Official sensitive - Commercial: Post Office bonuses - Permanent Secretary call
with POL
Official sensitive - Commercial
All
Alex Chisholm took a call this afternoon with Tim Parker, also on the line were Ken McCall and Tom
Cooper, to discuss the bonus position.
Tim recognised the difficult position for government, and coming out of the litigation that there is a
contingent liabilities charge that will reflect into next year’s POL accounts, rather than the current set
of accounts, but felt that the 5% increases that the previous/current CEOs would be offered under
the proposal would be reasonable due to the transformation and profitability of the organisation. He
raised that the bonus pot would reflect that to the executive, and also 1,400 staff, including leavers
which had letters with specific offers. The long-term, confidential, proposal would be that bonuses for
next year, when any liability was realised would be amended to reflect those costs.
Alex raised that Justice Fraser had been very critical of the leadership of the Post Office, and the High
Court supported this view. That whilst the liabilities may be for future accounts, they are very critical
of the leadership of POL, and the executive have a role to play. If large payments were made to the
executive this year, then there would be no holding to account those who have overseen the
litigation, part of the role of the CEO and CFO. Whilst the quantum of costs is not currently known,
serious failings have been found and it’s likely to be tens of £millions. Alex concluded his comments
with the point that those who had the capacity to oversee the issues raised in the litigation, the
senior team, should have this reflected in their discretionary bonus this year, with a substantial
reduction to the discretionary element, and also reflected in next year round. Alex viewed that those
below the senior team, this year, should not take a hit on their bonus.
Tim will now consider this discussion.
Kind regards
Beth
Beth White
BEIS0001167
BEIS0001167
Deputy Director, Post Office Policy and Sectors Briefing Hub
Department for
Business, Energy
& Industrial Strategy
4" Floor Spur 2, 1 Victoria Street, London SW1H OET
www.gov.uk/beis I https://twitter.com/beisgovuk
Working pattern: Tuesday, Wednesday, Thursday
Permanent Secretary;
Ce: Vandini, Cecili
Carl (Other.
Beth (Better Regulation Exe
Manufacturing and Services):
Beal, Eleanor (Advanced
Carl is on leave, so copying in Beth and Eleanor.
Best wishes
Professional Business Services, Retail and Post
Department for
Business, Energy
& Industrial Strategy 1 Victoria Street (Level 4, Spur 2) London SW1H OET
www.gov.uk/beis I https://twitter.com/beisgovuk
From GRO_
Sent: 30 July
To: Tolhurst (Private O:
Tolhurst (Private Office)
fic
I Creswell,
BEIS0001167
BEIS0001167
Carl (Other...) GRO. Cooper, Tom - UKGI ca
Subject: RE: Post Office bonuses- next steps
Dear All,
Please could you let me know what times Alex, Kelly & Carl would be available for a meeting this
Friday regarding below, which can be via telephone.
Thank you.
Kind regards,
PA to Tom Cooper, Director I Tom Aldred & Anna Payton, Executive Directors I
iovernment Investments
1 Victoria Street I London I SW1H OET
From: Cooper, Tom - UKGI
Sent: 29 July 2019 18:17
To: Tolhurst (Private Office)
ermanent Secretary
GRO.
Ce: Vandini, Cecilia (Advanced Manufacturing and Services)
i Aldred, Tom - UKGI <
Subject: Post Office bonuses- next steps
’'ve spoken to Tim Parker and Ken McCall this evening. The payment of bonuses will now be deferred
pending the discussion with BEIS requested in Alex’s letter to me.
Tim and Ken have asked for a meeting to hear BEIS’ perspective first hand and give their views. Given
the timing of bonus payments in the organisation there is some urgency. At the moment they are
holding all payments throughout the organisation on the basis that BEIS might want bonuses to be
reduced for all employees. If, on the other hand, this is really a discussion about senior executives
that would be good to know as it would allow the company to pay other employees in the usual way.
I’m assuming Kelly and Alex would both attend. I’ve asked Lily to contact your offices to get some
dates and times for a meeting as soon as can be arranged.
Tom
Sent from my iPhone .
On 29 Jul 2019, at 16:03, Permanent Secretary
BEIS0001167
BEIS0001167
Dear Tom,
Please find attached a letter from Alex regarding POL bonus payments.
He wanted to flag that any counter-suggestion should inform us of the legal obligations
Post Office are under for staff bonus payments, and give info on the breakdown of
payments to sub-board level staff (is everyone paid the same rate? What have
payments been in recent years? etc.).
Kind regards,
Ben
<image001.png><
ge002.jpg> Benjamin Steyn
to the Permanent Secretary
1 Victoria Street, London, SW1H OET
www.gov.uk/beis I https://twitter.com/beisqovuk
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