Controversy Surrounds Post Office CEO Amid Horizon Inquiry

Nick Read, the outgoing Chief Executive Officer of the Post Office, is at the center of renewed controversy as he prepares to present evidence in the ongoing Horizon IT inquiry. The inquiry, which is examining one of the UK’s most extensive miscarriages of justice, involves hundreds of sub-postmasters wrongfully convicted due to errors in the Horizon accounting software.

Mr. Read, who assumed his role in 2019, has been a pivotal figure during a turbulent period for the Post Office as it navigates the fallout from the scandal. Despite ambitions to highlight progress under his leadership, his testimony is expected to address substantial criticism surrounding his management practices and controversial salary arrangements.

According to reports from The Times, Mr. Read received a £30,000 increase to his bonus in July 2022, which was supposedly implemented without requisite approval from the government shareholder. This increase elevated his total annual pay package to £870,000. A source mentioned that this development had caused concern among key stakeholders.

The enhanced bonus was purportedly a reward for Mr. Read’s leadership during “exceptionally challenging times,” as noted in the company’s annual accounts. However, this decision to increase the bonus came under scrutiny as it reportedly lacked prior approval from Grant Shapps, the Business Secretary at the time, raising potential issues of non-compliance with public funding regulations.

Henry Staunton, who assumed the role of Post Office Chairman later in 2022, confirmed to the inquiry that retrospective approval for the bonus was sought only after the payment was disbursed. This situation compelled the Business Department to demand repayment of the unapproved amount, which some saw as a potential “public money breach issue.”

Amidst these financial disputes, Mr. Read has faced allegations regarding a “toxic” internal culture at the Post Office. A whistleblower document claimed involvement of at least 120 employees in the wrongful prosecution of sub-postmasters, and former criticisms persist about Mr. Read’s management style, which reportedly favored “younger, deferential, male colleagues.”

Adding to the dialogue, Seema Misra, one of the Horizon victims who was imprisoned while pregnant, commented on Mr. Read’s compensation issues, stating, “It’s shocking, and hardly anything shocks me any more. They don’t care about postmasters and what they’ve been going through.”

As Mr. Read prepares to step down in March next year, new leadership is anticipated with Nigel Railton, formerly CEO of Camelot, stepping in as chairman. Railton has committed to significant governance reforms. A Post Office spokesperson emphasized that remuneration decisions are governed by the Remuneration Committee, underscoring that neither the CEO nor the CFO have authority over their own compensation arrangements.