Royal Mail picks Thompson as CEO to deliver transformation plan

[goneaway]

https://news.sky.com/story/royal-mail-p ... n-12184461

Royal Mail will this week name former Ocado exec Simon Thompson as its new boss, Sky News can reveal.

Mark Kleinman - City editor
Mark Kleinman
City editor @MarkKleinmanSky

Sunday 10 January 2021 19:20, UK



A former Ocado executive who has been involved in the NHS Test and Trace programme will this week be appointed as the next boss of Royal Mail.

Sky News has learnt that Simon Thompson, who has worked for companies including Apple, Honda, Lastminute.com and Wm Morrison, is to be named as the former state monopoly's next chief executive.

Mr Thompson is already a non-executive director on Royal Mail's board, having served as a director of the company since November 2017.

He is "a global business leader with proven expertise in the digitisation of business and the customer experience", according to Royal Mail, and for more than a year has been the designated board member responsible for employee engagement.

Sources said his appointment as UK chief executive was expected in the coming days, nearly eight months after the group chief executive Rico Back departed after an unhappy period at the helm.

Mr Thompson's last executive role was as chief product officer at Ocado, the grocery delivery group, which he left last year.

He subsequently spent several months developing the NHS's COVID-19 Test and Trace app as its managing director.

The appointment of Mr Thompson as UK chief executive, overseeing Royal Mail's letters and parcels operations, will remove another of the uncertainties facing investors following the turmoil of last year.

The company made a crucial announcement in December that it had reached agreement with the Communication Workers Union (CWU) to end a two-year dispute over pay.

Under the deal, Royal Mail staff will receive a 2.7% pay increase effective from April last year, with a further 1% from this April.

The group has benefited from soaring parcel volumes but been hit by sharp declines in its letters business - both trends which have been accelerated during the coronavirus pandemic.

"We have a window of opportunity to focus Royal Mail on what our customers want today - an ever growing need for more parcels, whilst providing a sustainable letters service," Keith Williams, Royal Mail's interim executive chairman, said when the CWU deal was announced.

"This agreement provides a framework to do just that, but the proof will be in the pudding.

"We have been far too slow to adapt in the past and now need to deliver change much more quickly."

Mr Williams is expected to revert to a non-executive role when Mr Thompson takes up the post.

It was unclear on Sunday evening whether Stuart Simpson, who has been Royal Mail's acting chief executive since last May, would remain with the company.

Mr Thompson will not be responsible for GLS, Royal Mail's profitable European parcel delivery operation, which is now run by Martin Seidenberg.

Following Mr Back's exit last year, Royal Mail's board abolished the group CEO role, with both divisional bosses reporting to the board.

The company's shares have recovered strongly in recent months, and on Friday closed at 360.3p, marking a rise of 60% during the last year.

Executive directors were not awarded bonuses for 2019-20, although it is unclear whether they will be eligible for awards this year.

Royal Mail was privatised by the Conservative-Liberal Democrat coalition government in 2013, when the then business secretary Vince Cable floated the company at 330p a share.

It now faces a multitude of challenges, including the loosening of its relationship with the Post Office, its former sister company, and growing competition from rivals including Amazon.

A Royal Mail spokeswoman declined to comment.

[Jb1969]

If he is responsible for the Track & Trace app Royal Mail are screwed!

[Grumpyoldmailman]

Does this mean we will all be encouraged to install the app on our phones now rather than the current advice of not installing it?

[WASD]

Comical.

[cockneyrebel]

We paid a headhunting firm to look for a new CEO ???
And Mr Thompson was already a Non Executive Director of Royal Mail ???!!!
We are going to settle for 1% re this year ?? when we have money do things like the above ??
Our own board/executives cannot make a decision re a new CEO themselves ??
If not, what are we paying them for ??
And What salary is Mr Thompson going to be offered £400/500,000 ?? plus add ons !!!
Can 1 Man make a difference in an organisation like ours ??
How much is Mr Simpson getting re his departure ??
And we adding another couple of people to the Board/6 Figure payrolls ???
We keep being told to make savings ?? Improve our working practises ?
NOTHING CHANGES MONEY GOES TO MONEY
Right now all we have is Depots in disarray/Covid Staff Fatigue/Illness/Injury/Isolation
Vans not fit for purpose
To many Depots to mention, with no proper Cleaner in the middle of the worse pandemic ever ????
PDA guns which at the first drop of rain, go into I wont work mode !! Pity we dont adopt that attitude !
Still baffled re the £147 million taken from our first 6 months figures 2020 re 2,000 management to go ?
Yet as of today ! How many have gone ??? Is it None/Zero ??
MONEY TALKS but not for hardcore of this Organisation

[postareale]

https://www.londonstockexchange.com/new ... e/14820892

Directorate Change
ROYAL MAIL PLC
Released 07:00:07 11 January 2021

RNS Number : 1574L
Royal Mail PLC
11 January 2021

Royal Mail plc

(Incorporated in England and Wales)

Company Number: 8680755

LSE Share Code: RMG

ISIN: GB00BDVZYZ77

LEI: 213800TCZZU84G8Z2M70

Royal Mail plc

11 January 2021

This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No 596/2014.


DIRECTORATE CHANGES

The Board of Royal Mail plc (RMG.L) today announces the following senior executive appointments.

Simon Thompson, Non-Executive Director of Royal Mail plc, becomes Chief Executive of the UK business with effect from today.

Martin Seidenberg, Chief Executive of GLS, will join the Royal Mail plc Board on 1 April 2021.

Mick Jeavons, interim Chief Financial Officer for the Group since May 2020, will continue in that position on a permanent basis and will join the Royal Mail plc Board as an Executive Director with immediate effect.

As a result of these changes Stuart Simpson, who has been acting as interim Chief Executive of the UK business since May 2020, will leave Royal Mail at the end of January following a short handover period.

Keith Williams, who has been acting as interim Executive Chair of the Group since May 2020, will revert back to being Non-Executive Chair from the same date.

Announcing these changes, Keith Williams said,

"Royal Mail in the UK is in a period of significant transition and needs to move quickly, put the customer at the heart of everything we do, and adapt our business to better serve changing customer needs. Simon has been a Non-Executive Director of the Group since November 2017 and already has significant knowledge of the Group and its operations. He also has a wealth of experience both in digital transformation and customer experience and is ideally placed to lead the opportunity to grow and expand our UK parcels business and to meet our customers' needs across both letters and parcels."

"Martin has made an impressive start as CEO of GLS. Bringing him onto the Group Board allows us to benefit from his detailed knowledge of the parcels sector and reflects the contribution of GLS to the Group."

"We have two excellent leaders in place for each of our businesses, focused on the opportunities which they each have to grow and succeed in the future."

"Mick has been with the Group for 27 years and has served in a variety of senior positions, including as Deputy Group CFO and before that, as Chief of Staff to the Group CEO. His deep experience of the Group and its operations will be invaluable."

"The Board would like to congratulate all three on their appointments and extend its thanks to Stuart for his significant contribution to Royal Mail over the last eleven years, in particular for acting as interim Chief Executive of the UK business over the last eight months. We all wish him well as he develops his career outside Royal Mail."

Commenting on his appointment, Simon Thompson said, "Against the backdrop of a challenging year, our colleagues have once again demonstrated the invaluable service they provide for our communities up and down the country. Looking ahead, we need to build on the great trust we have on the doorstep. We need to develop a razor-sharp focus on the customer, making sure our services are delivering exactly what our customers need and want. And we need to explore new opportunities for growth. We now have a unique opportunity to grow our business, and I look forward to working with our colleagues and stakeholders to take this great company forward."

Stuart Simpson said, "It has been my privilege to lead Royal Mail in the UK in the last eight months, particularly in such trying times. It is a tremendous company with fantastic people. I wish Simon and all my colleagues the very best success for the future."

This announcement is made in accordance with Listing Rule 9.6.11R. There are no other details required to be disclosed pursuant to Listing Rule 9.6.13R.

In accordance with Section 430(2B) of the Companies Act 2006, the relevant disclosures will be made in the 2020/21 annual report.

Notes to Editors:

1. Simon Thomson has extensive business experience and a proven record in customer experience and the digitisation of businesses. He was most recently Chief Product Officer at Ocado Group plc and has previously held customer-focused positions at Wm. Morrison Supermarkets Plc and HSBC, as well as other digital companies such as Apple Inc. and lastminute.com.

Simon will transition from his Non-Executive Director role to Chief Executive of the UK business immediately. Further detail of Simon's remuneration, which is in line with the Group Directors' Remuneration Policy, will be disclosed as appropriate in the 2020/21 annual report. His base salary is £525,000 and a pension allowance of 13.6%.

2. Martin Seidenberg has extensive logistics experience. He joined GLS in March 2015 from DHL and was appointed CEO of GLS in May 2020. He will join the Board in April 2021. Further detail of Martin's remuneration, which is in line with the Group Directors' Remuneration Policy, will be disclosed as appropriate in the 2020/21 annual report. His salary will be €580,000 and a pension allowance of 13.6%.

3. Mick Jeavons is a chartered accountant and has served in various senior roles at Royal Mail over 27 years, including Corporate Finance Director at the time of the IPO in 2013 and then as Chief of Staff to the Group CEO. He became Deputy Group CFO in 2018 before being appointed interim Group CFO in May 2020. He will join the Board with immediate effect.

Further detail of Mick's remuneration, which is in line with the Group Directors' Remuneration Policy, will be disclosed as appropriate in the 2020/21 annual report. His salary is £420,000 and a pension allowance of 13.6%.

In addition to the fixed remuneration, all three executive directors will be eligible to participate in the Group's short-term and long-term incentive plans which each have a maximum award value of 150% of salary.

4. Keith Williams' remuneration as Non-Executive Chair will remain at £300,000. He received no additional remuneration while acting as interim Executive Chair for the past eight months.

5. Stuart Simpson - the Remuneration Committee determined that the following arrangements are fair and reasonable, consistent with the Group Directors' Remuneration Policy and in line with Stuart's contractual entitlements:

· Until 31 January 2021, Stuart will continue to receive his normal salary and benefits.

· Following this he will receive 12 equal monthly payments, totalling £450,000, which represents 12 months' pay in lieu of notice. These payments will be reduced by any alternative paid employment that he receives.

· He will be eligible for any 2020-21 bonus, time pro-rated for service, should one be paid. Any bonus would be at the discretion of the Remuneration Committee including their assessment of UK performance at the end of the current financial year.

· Stuart will be conferred eligible leaver status and retain certain share awards post his termination:

− one unvested Deferred Share Bonus Plan (DSBP) award, awarded in 2018 (56,350 shares), relating to performance year 2017-18 and due to vest in June 2021.

− three unvested Royal Mail Long-Term Incentive Plan (LTIP) awards which will continue to vest over the original vesting period i.e. there is no acceleration of vesting, and the awards will remain subject to a) malus (i.e. the potential claw-back of any unvested element), b) the future satisfaction of performance measures and c) time apportionment based on service.

· Consistent with the Group Directors' Remuneration Policy, there will be a requirement to hold shares (worth up to two times salary) for two years following termination. This holding requirement will apply to shares that subsequently vest under his DSBP and LTIP awards.

· Stuart will receive a capped contribution of up to £8,500 (excluding VAT) towards legal fees incurred in connection with his departure and a capped contribution of up to £50,000 (excluding VAT) towards outplacement support.

· There are no further payments for loss of office.

6. The Board of Royal Mail plc will have nine directors from April 2021, consisting of three executives, five independent Non-Executive Directors and the independent Chair. Five are male and four are female.

Enquiries:



Investor Relations

John Crosse

Phone: 07483 390 957

Email: investorrelations@royalmail.com



Royal Mail investor relations line: 020 7449 8183



Media Relations

Jenny Hall

Phone: 07776 993 036

Email: jenny.hall@royalmail.com



Royal Mail press office: press.office@royalmail.com



Company Secretary

Mark Amsden

Phone: 020 7449 8289

Email: cosec@royalmail.com

[panzer4]

We paid a headhunting firm to look for a new CEO ???
And Mr Thompson was already a Non Executive Director of Royal Mail ???!!!
We are going to settle for 1% re this year ?? when we have money do things like the above ??
Our own board/executives cannot make a decision re a new CEO themselves ??
If not, what are we paying them for ??
And What salary is Mr Thompson going to be offered £400/500,000 ?? plus add ons !!!
Can 1 Man make a difference in an organisation like ours ??
How much is Mr Simpson getting re his departure ??
And we adding another couple of people to the Board/6 Figure payrolls ???
We keep being told to make savings ?? Improve our working practises ?
NOTHING CHANGES MONEY GOES TO MONEY
Right now all we have is Depots in disarray/Covid Staff Fatigue/Illness/Injury/Isolation
Vans not fit for purpose
To many Depots to mention, with no proper Cleaner in the middle of the worse pandemic ever ????
PDA guns which at the first drop of rain, go into I wont work mode !! Pity we dont adopt that attitude !
Still baffled re the £147 million taken from our first 6 months figures 2020 re 2,000 management to go ?
Yet as of today ! How many have gone ??? Is it None/Zero ??
MONEY TALKS but not for hardcore of this Organisation

£525000 plus 13.6 %pension allowance. Snouts in the trough as usual

[PostmanBitesDog]

[derricksmyth]

What a waste of money, as share holders can't we vote against this?