A major investor in postal giant Royal Mail has expressed anger at the management of the company in the same week its shares have taken a battering.
Shares in the firm fell 14 per cent on Monday after it issued a profit warning, before closing down another seven per cent yesterday.
Royal Mail has seen some recovery today, as shares closed 0.81 per cent higher today.
City A.M. understands a top 10 institutional shareholder is unhappy with the company's management, and in particular its handling of the pension deal it struck with unions earlier this year.
"There is frustration as the pension deal with the unions was presented as a win-win situation, but what wasn’t appreciated fully was the level of disgruntlement amongst the workforce," the investor said.
The deal, which was reached back in February, included a five per cent pay increase for full-time employees, as well as the company opening the UK's first ever collective defined contribution pension scheme.
Analysts had previously expected shareholders to be vocal in their dissatisfaction with Royal Mail's recent performance.
Russ Mould, an investment director for AJ Bell, told City A.M new boss Rico Back had inherited a tough situation from former boss Moya Greene.
"Moya Greene may have timed her exit well and Rico Back has a tough job on his hands," he said. "He has inherited a difficult operating environment but will need to deliver on those cost and productivity goals if the issue of his own pay is not to resurface at some stage."