Royal Mail owner appoints new chief executive after year of union strife and heavy losses
Royal Mail’s parent company has appointed insider Martin Seidenberg as CEO of the group as it embarks on a major overhaul.
Seidenberg has been promoted to head of International Distribution Services (IDS) and will take up the position next month.
He previously led Netherlands-based GLS since 2020 and prior to that spent 15 years at courier giant DHL Group, also known as Deutsche Post.
GLS is Royal Mail’s more successful sibling, with the former managing consistent profits while the latter has been beset by strikes and fierce competition from rivals such as Amazon and Evri.
It has expanded steadily under Seidenberg, with GLS accounting for about 39 percent of IDS revenue, compared to 29 percent in 2020.
Lead post: Martin Seidenberg (pictured) has been promoted to head of International Distributions Services and will take up the position next month
Once he takes over, he will be responsible for appointing chief executives for Royal Mail and GLS.
“It is a privilege to be appointed. We may have challenges ahead, but through transformation and collaboration with our people, we can undoubtedly have a bright future ahead,” said Seidenberg.
IDS Chairman Keith Williams added: “The board is pleased to appoint Martin. His extensive international logistics experience and proven track record make him the right person to lead the group at this critical time.”
Shares rose 2.1 percent, or 5.6 pence, to 272.4 pence. Seidenberg, 50, will receive a base salary of £700,000, an increase from his pay package at GLS which was £528,000 last year.
It will also be swelled by bonuses and other benefits, with Seidenberg taking home a total of £1.48 million last year.
It is also clear that he will be moving to London, a departure from one of his predecessors, Royal Mail boss Rico Back.
Back, another German-born manager who ran the British company from 2018 to 2020, was dubbed “the flying postman” for commuting from Switzerland and faced criticism for running the company from his multi-million pound home overlooking Lake Zurich during the pandemic.
Seidenberg’s appointment means that the group has not yet had a British CEO in the ten years since its privatization. Back succeeded Moya Greene, a Canadian.
Royal Mail, with the former managing consistent profits while the latter has been beset by strikes and intense competition from rivals such as Amazon and Evri
Seidenberg’s ascendancy is in stark contrast to Royal Mail boss Simon Thompson, who announced in May that he would be leaving at the end of October following a turbulent tenure that saw the 507-year-old postman come into conflict with the Communication Workers Union (CWU), with postmen on strike for 18 days last year.
The dispute, sparked by squabbles over wages and changes in terms, ended last week when CWU members backed a deal struck in April.
“Investors welcome the appointment of a new CEO to steer the company in a more positive direction after the recent turmoil,” said Interactive Investor’s Victoria Scholar.
IDS reported a revenue increase of 0.3 percent to £3 billion for the three months ended June 30.
Seidenberg will look to turn his fortunes around after the labor dispute pushed it to a loss of £748m for 2022.