the salary of Royal Mail chief executive Moya Greene will not be increased - at her own request.

The move appears to sidestep a potential clash with the Government, which still holds a 30% share of the group after it was controversially privatised last year.

It follows reports ministers were on a collision course with the company after chairman Donald Brydon wanted to improve Ms Greene's pay after she steered Royal Mail through the stock market flotation.

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The company said: "The remuneration committee of Royal Mail group has decided not to propose any base pay increase or new incentive arrangements for the chief executive officer. In doing so, the committee has taken into account the views and wishes of the CEO."

Ms Greene's total pay package for the year to March 2013 was £1.22 million. This does not include a £250,000 perk to help her buy a house, which she repaid. But it was still up from £1.1m the year before. This included a £498,000 base salary - unchanged since 2010 - as well as her bonus, pension and other benefits.

Last month Business Secretary Vince Cable called for boardroom restraint.

He said yesterday: "I admire the restraint the Royal Mail board has shown."

Dave Ward, of the Communication Workers Union, said: "We welcome Royal Mail's decision."