Maelstrom

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Boardroom changes at the Royal Mail, so soon after the company’s float, were certain to raise eyebrows. For the firm to suddenly declare that modernisation is done and the services of Mark Higson, who joined the company in 2007, are no longer needed is a bit rum.

The explanation seems to be that Higson was a good chap to have around when switching delivery systems from posties carrying bags to vans and trolleys, but a different kind of person is needed to update the IT systems so that the Royal Mail can compete with some of its rivals in tracking parcel dispatches and deliveries.

The mastermind behind all of this will be Sue Whalley, who carries the distinction of having worked for McKinsey, and has been given the grand title of Chief Operating Officer.

Under normal British circumstances one might have expected Whalley to have been elevated to the main board. Chief executive Moya Greene plainly has decided she doesn’t want to create an obvious succession quite yet, while she is still waiting for her various share options to mature.

The other major change is that John Duncan, who came with Greene from Canada is leaving as head of human resources. He is displaced by John Millich who did investors an enormous favour by negotiating a settlement with the Communications Workers Union without causing a strike.

All of this and the strong share price – still 70pc above the float price – provides an opportunity for the Government to sell more shares when the freeze comes off in mid-March. That may give the taxpayer the chance, finally, to share in some of the upside. This time it might be wise to cut Goldman Sachs et al out of the equation.