Royal Mail’s chief executive Moya Greene is to step down after more than eight years in charge with almost £1m in pay and bonus.
Rico Back, the head of Royal Mail’s parcels delivery arm GLS, will take over as the new chief executive, as was reported by Sky News last week.
Ms Greene, who had run the Canadian postal service for several years, steered the former state monology through its controversial £3.3bn privatization.
“When Moya joined in the summer of 2010, the Company was balance sheet insolvent,” Peter Long, chairman of Royal Mail, said.
“Since then, Royal Mail has been transformed, including our privatisation in 2013 and two significant, ground-breaking agreements with the CWU (Communication Workers Union).
“Alongside the strong financial position Moya has secured for the Company, we have invested over £1.5bn in our UK operation in recent years. We are one of the most favourably viewed brands in the UK”.
Ms Greene will receive a cash payment equivalent to 12 months’ base salary, or £547,000, and a cash bonus of £367,000 when she leaves in September, Royal Mail said.
Royal Mail is legally required to make this payment to Ms Greene as part of her employment contract, which was approved by Government in 2010 when the company was in state ownership.
The company floated on the London Stock Exchange at a price of 330p. Shares are currently worth 563p, valuing Royal Mail at almost £5.7bn.
Ms Greene, who is a non-executive director of easyJet and trustee of Tate, will take on the role of non-executive director of miner Rio Tinto in the second half of 2008.
When Ms Greene steps down the number of female CEOs of FTSE 100 company will fall to five.
The appointment of German national Mr Back underlines the importance of the parcel business to Royal Mail’s future growth. Mr Back is the founder of German Parcel, which was bought by the Royal Mail in 1999.
From – SkyNews