Royal Mail owner appoints new chief exec after year of union disputes and heavy losses

The parent of Royal Mail has appointed insider Martin Seidenberg its group chief executive as it embarks on a dramatic overhaul.

Seidenberg has been promoted to the head of International Distributions Services (IDS) and will take up the role next month.

He had previously run Netherlands-based GLS since 2020 and before that spent 15 years at courier giant DHL Group, also known as Deutsche Post.

GLS is the more successful sibling to Royal Mail, with the former managing to deliver consistent profits while the latter has been beleaguered by strikes and fierce competition from rivals such as Amazon and Evri.

It has steadily expanded under Seidenberg, with GLS accounting for around 39 per cent of IDS revenues, compared to 29 per cent in 2020.

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 working together with our people, we can undoubtedly have a bright future,’ Seidenberg said.

IDS chairman Keith Williams added: ‘The board is delighted to appoint Martin. His extensive international logistics experience and proven track record makes him the right person to lead the group at this critical juncture.’

The shares rose 2.1 per cent, or 5.6p, to 272.4p. Seidenberg, 50, will be paid a base salary of £700,000, an increase from his pay packet at GLS which last year was £528,000. 

It will also be swelled by bonuses and other benefits, with Seidenberg taking home a total of £1.48million last year.

It is also understood 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 commuting from Switzerland and was criticised for running the business from his multi-million-pound home overlooking Lake Zurich during the pandemic.

The appointment of Seidenberg means that in its ten years since privatisation, the group has yet to have a Briton as chief executive. Back succeeded Moya Greene, a Canadian.

Royal Mail, with the former managing to deliver consistent profits while the latter has been beleaguered by strikes and fierce competition from rivals such as Amazon and Evri

Seidenberg’s ascendency 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 post carrier in dispute with the Communication Workers Union (CWU), with posties out on strike for 18 days last year.

The dispute, sparked by rows over pay and changes to conditions, ended last week when CWU members backed a deal struck in April. 

‘Investors are cheering the appointment of a new chief executive to help steer the company in a more positive direction after the recent turmoil,’ said Victoria Scholar, at Interactive Investor.

IDS reported a 0.3 per cent rise in revenue to £3billion for the three months to June 30. 

Seidenberg will seek to turn around its fortunes after the industrial dispute helped push it to a £748million loss for 2022.