The Royal Mail share price will be in the spotlight after the company blocked planned bonuses to senior executives. The stock ended last week at 581p, where they have been in the past few days. They have jumped by more than 390% from the lowest level in 2020.
Royal Mail news. Royal Mail, the biggest postal services company in the UK, has been in a pandemic-fueled recovery trend. This is because the pandemic pushed more people to remain at home and order products using the internet. As a result, the firm saw higher demand for its services. It has also expanded its services by investing in Sunday deliveries. This growth was evidenced by the company’s recent earnings that saw its profits rise to more than 702 million pounds.
The RMG share price will be in the spotlight today after the company blocked bonuses and share awards to its senior management. The awards were worth more than 1.4 million pounds. This means that the former Chief Executive will miss out on rewards worth over 1 million pounds . The current Chief Fiance Officer will also miss out on rewards worth up to 260,000 pounds. The firm said:
“We paid no 2020-21 annual bonuses to Royal Mail executive board members and other senior managers. The decision not to award bonuses took several factors into account, including the pace of transformation at Royal Mail being slower than planned and quality of service.”
The daily chart shows that the Royal Mail share price has been in a tight range recently. It has moved from the year-to-date high of 617p to 581p. It is still being supported by the 50-day exponential moving averages (EMA). Also, it is above the 23.6% Fibonacci retracement level. Further, the shares seem to be forming a bullish flag pattern.
Therefore, we can’t rule out a situation where the price breaks out higher. If this happens, the next key resistance level to watch will be the year-to-date high of 617p. On the flip side, a move below the 23.6% retracement at 500p will invalidate this trend.
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