Post Office Executive Directors Remuneration Clawback Provision

Roedd y cais yn rhannol lwyddiannus.

Dear Post Office Limited,

All Post Office Annual Reports since 2012 have contained a Clawback provision in relation to remuneration payments made to Post Office Executive Directors.

It states:-

'Clawback provision -
Executive Directors have clawback clauses in their contracts, as well as the STIP [Short Term Incentive Plan] and LTIP [Long Term Incentive Plan] rules, which provide for the return of any overpayments in the event of misstatement of the accounts, error or gross misconduct [defined by www.gov.uk to include ‘gross negligence’] on the part of an executive. These provisions are in line with market best practice.'

Furthermore, many of those annual reports also state:-

'Statement of consideration of Shareholder’s views -
The Chairman of the [Remuneration?] Committee communicates regularly with the Shareholder Executive on behalf of the Special Shareholder on all matters concerning executive remuneration, and the Special Shareholder approves all aspects of the framework for Executive Director remuneration.'

Although in later years the above statement seems to have been replaced with:-

'The remuneration framework for the Executive Directors requires consent from the Special Shareholder (BEIS) each year.'

Please would you provide the answers to the following questions with regard to those statements:-

• It is BEIS who agrees the level suggested by the Post Office Remuneration Committee to be paid to each Post Office Executive Director having reviewed that particular Director has met the required criteria for their remuneration. If this is not the case please provide details relating to the method of approval of these payments and the body involved.

• Since 2012, how often has the Clawback provision been used?

• Are there any restrictions as to how many years in the past the Clawback provision can be applied to?

• Who takes the decision as to whether or not the Clawback provision should be invoked? Is it the Post Office Board or BEIS or some other body or person? Please provide the relevant details?

Yours faithfully,

Alan Bates (JFSA)

Information Rights Team, Post Office Limited

Our ref: FOI2020/01013

Dear Mr Bates (JFSA),

Thank you for your request for information which was received on 15th
December. Your request is being considered under the terms of the Freedom
of Information Act 2000.

The Act requires that a response must be given promptly, and in any event
within 20 working days. Unfortunately, our Information Rights team have
all been affected by Covid-19 and we have had to re-assign employees from
other areas of the business to assist in addressing the backlog, however,
we will make every attempt to reply by 18th January.

Please remember to quote the reference number above in any future
communications.

Yours sincerely,
Jackie Lawrence

Information Rights Team

Ground Floor

Finsbury Dials

20 Finsbury Street

London EC2Y 9AQ

Dear Information Rights Team,

I do appreciate you keeping me informated of the situation which is entirely understandable given the current pandemic crisis. The last thing I want to do is cause problems for Post Office and will await your response on the 18th January.

Yours sincerely,

Alan Bates (JFSA)

Information Rights Team, Post Office Limited

1 Atodiad

Dear Mr Bates (JFSA),

Please find the response attached to your Freedom of Information request.

Regards,

Jackie Lawrence

Information Rights Team

Ground Floor

Finsbury Dials

20 Finsbury Street

London EC2Y 9AQ