Simon Thompson, CEO of Royal Mail, is stepping down after a bitter dispute with Communication Workers Union
- The dispute raged for nearly a year before an agreement was reached last month
- Thompson resigns after a controversial two-year tenure at Royal Mail
Royal Mail CEO Simon Thompson is stepping down, drawing a line under a tumultuous two-year tenure in which he has faced fierce criticism.
Parent company International Distributions Services said late Friday morning it was at an ‘advanced stage’ in appointing a new CEO, with Thompson opting to leave now that a deal has been reached between Royal Mail and the Communication Workers Union.
The boss of the 507-year-old mail and delivery company has faced a protracted spat with the CWU and recently made a humiliating appearance before MPs, drawing criticism for his tenure from across the House.
The dispute between Royal Mail and its employees dragged on for nearly a year before a deal was struck last month – which included a 10 per cent increase for staff.
Simon Thompson leaves Royal Mail after two years as CEO
It followed a bloody period for the company that saw postmen strike for 18 days last year.
The action caused chaos in UK delivery offices. And Royal Mail warned it was losing more than £1 million a day and would have to call in administrators if the situation didn’t improve.
Thompson, who first joined IDS’s board of directors as a non-executive director in 2017, previously held positions at HSBC, Honda, Apple, Motorola and Ocado Group.
IDS, which will present its annual results on May 18, said it has agreed to stay with the company until October 31, 2023 “as part of the transition.”
IDS Chairman Keith Williams will provide “additional oversight and support alongside his colleagues on the board” during this period, it added.
Mr Williams said: “As CEO, his leadership, resilience and relentless drive to ensure 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 the best for the future.”
Mr Thompson added: ‘The changes we have made, the infrastructure we have put in place and the agreements we have made with our unions mean that Royal Mail now has an opportunity to compete and grow.
“It’s what I’ve always wanted, and now is the right time to pass the baton to a new CEO to drive the next phase of the company’s reinvention. I want to thank my team for their support during a difficult and important time of change.”