The chief executive of Royal Mail Simon Thompson is to step-down, drawing a line under a tumultuous two-year tenure that saw him face fierce criticism.
Parent company International Distributions Services said late on Friday morning it was in ‘advanced stages’ of appointing a new CEO, with Thompson opting to depart now an agreement has been reached between Royal Mail and the Communication Workers Union.
The boss of the 507-year-old postal service and delivery firm has faced a long-running spat with the CWU and recently made a humiliating appearance in front of MPs, with criticism levelled at his tenure from across the house.
The dispute between Royal Mail and its workers dragged on for nearly a year before a deal – which included a 10 per cent raise for staff – was struck last month.
Simon Thompson to leave Royal Mail after two years as chief executive
It followed a bruising period for the company that saw posties walk out on strike for 18 days last year.
The action caused chaos in delivery offices across the UK. And Royal Mail warned it was losing over £1million per day and would need to call in administrators if the situation did not improve.
Thompson, who first joined the IDS board as a non-executive director in 2017, previously held roles at HSBC, Honda, Apple, Motorola and Ocado Group.
IDS, which will report its annual results on 18 May, said he had agreed to remain with the business until 31 October 2023 ‘as part of the transition’.
Chairman of IDS Keith Williams will provide ‘additional oversight and support alongside his board colleagues through this period’, It added.
Mr Williams said: “As CEO, his leadership, resilience and unwavering drive to ensure that Royal Mail transforms for the benefit of our customers means we have set a clear path to turn the business around. We are grateful for his dedication and what he has achieved at the company, and wish him well for the future.’
Mr Thompson added: ‘The changes we have made, the infrastructure we have put in place, and the agreements negotiated with our trade unions mean that Royal Mail now has a chance to compete and grow.
‘That is what I have always wanted, and it is now the right time to hand over to a new CEO to deliver the next stage of the company’s reinvention. I would like to thank my team for their support during a difficult and important time of change.’
