Royal Mail owner appoints new chief executive after a year of union disputes and heavy losses
Royal Mail’s parent company has appointed whistleblower Martin Seidenberg as its group chief executive as it embarks on a dramatic overhaul.
Seidenberg has been promoted to head of International Distribution Services (IDS) and will take up the role next month.
He had previously run Netherlands-based GLS since 2020 and before that he spent 15 years at courier giant DHL Group, also known as Deutsche Post.
GLS is Royal Mail’s more successful sibling, the former managing to turn a steady profit, while the latter has been beset by strikes and fierce competition from rivals like Amazon and Evri.
It has expanded steadily under Seidenberg, with GLS accounting for around 39 percent of IDS revenue, up from 29 percent in 2020.
Lead Role: Martin Seidenberg (pictured) has been promoted to Head of International Distribution Services and will take up the role next month.
Once he takes over, he will be responsible for appointing the chief executives of Royal Mail and GLS.
‘It is a privilege to be named. We may have challenges ahead, but through transformation and working together with our people, we can certainly have a bright future,” Seidenberg said.
IDS Chairman Keith Williams added: ‘The board is delighted to appoint Martin. His extensive experience in international logistics and his proven track record make him the right person to lead the group at this critical time.”
The 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 salary package at GLS, which last year was £528,000.
It will also be augmented by bonuses and other benefits, with Seidenberg taking home a total of £1.48m last year.
It is also understood that he will move to London, a departure from one of his predecessors, Royal Mail boss Rico Back.
Back, another German-born executive who ran the UK business from 2018 to 2020, was dubbed ‘the flying postman’ for traveling from Switzerland and came under fire for running the business from his multi-million dollar home overlooking Lake Zurich during the pandemic.
Seidenberg’s appointment means that in the ten years since privatization, the group has yet to have a British chief executive. Back happened Moya Greene, a Canadian.
Royal Mail, with the former managing to turn a steady profit, while the latter has been beset by strikes and fierce competition from rivals like Amazon and Evri.
Seidenberg’s promotion is a stark contrast to Royal Mail boss Simon Thompson, who in May announced he would leave at the end of October following a turbulent tenure that saw the 507-year-old postman in dispute with the Communication Workers Union (CWU), with postal workers on strike for 18 days last year.
The dispute, sparked by disputes over wages and changes in conditions, ended last week when CWU members backed an agreement reached in April.
“Investors are celebrating the appointment of a new CEO to help steer the company in a more positive direction after the recent turmoil,” said Victoria Scholar, Interactive Investor.
IDS reported a 0.3 per cent increase in revenue to £3bn for the three months to June 30.
Seidenberg will be looking to turn his fortune around after the industrial dispute led to a loss of £748m by 2022.
