Feb. 19 (Bloomberg) -- Deutsche Post AG, Europe's biggest postal service, said it won't make a severance payment to former Chief Executive Officer Klaus Zumwinkel, who quit following allegations of tax evasion.

Zumwinkel, 64, whose contract was due to expire at the end of November, has also stopped receiving salary payments following his resignation Feb. 15, Deutsche Post spokeswoman Nicole Mommsen said today. The executive made 2.96 million euros ($4.36 million) in 2006, including 1.43 million euros in salary, according to the Bonn-based company's annual report.

Zumwinkel quit after prosecutors said they were investigating allegations he evaded 1 million euros in taxes by transferring money to Liechtenstein. Deutsche Post's supervisory board yesterday appointed logistics-unit chief Frank Appel as his successor as CEO.

Mommsen, speaking by telephone, declined to comment on why Zumwinkel will not get a severance payment and wouldn't say if he'll receive his annual bonus for last year. The spokeswoman said she didn't want to be quoted directly and that Deutsche Post no longer speaks on Zumwinkel's behalf.

The executive's home in Cologne was raided in a wider German probe of tax evasion. Liechtenstein's Crown Prince Alois criticized German authorities today for their handling of the investigation, calling intelligence methods an ``attack'' on the Alpine principality.

Zumwinkel, who served as Deutsche Post's CEO for 18 years, is cited in a company newsletter published last week as saying top managers should act as ``role models.'' He made the comments at an event last month, Mommsen said.

New CEO Appel, whose contract runs until Oct. 31, 2012, is faced with turning round Deutsche Post's unprofitable DHL Express unit in the U.S. and deciding whether to sell the Deutsche Postbank AG retail-banking unit.

To contact the reporter on this story: Jann Bettinga in Frankfurt at jbettinga@bloomberg.net.

Last Updated: February 19, 2008 13:28 EST