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Royal Mail has appointed its new boss, Martin Seidenberg, as the firm enters “a new phase of its transformation” following union disputes and heavy losses.
International Distributions Services (IDS), the parent company of Royal Mail, said that the 50-year-old German, will become chief executive of the group, stepping up to the role from August.
The 50-year-old German will be paid a base salary of £700,000 per year, plus a £95,000 pension allowance – which is up to around 30 times more than the average postal worker’s pay.
Seidenberg will earn £172,000 more in his new role as his base salary in his previous role was £528,000.
The new CEO was previously the boss of GLS, an Amsterdam-based parcel delivery company owned by IDS.
It was the only part of the business to grow its revenue in the first quarter of the financial year, according to figures released separately on Thursday (20 July).
Royal Mail’s revenue fell 4% in the first quarter while GLS’s grew to 7.4%.
An IDS spokesperson said GLS revenue had grown to 39% of the group under Seidenberg so it is the “right time to bring together these two companies of equal importance under single leadership”.
The new appointment comes after Royal Mail’s chief executive, Simon Thompson, revealed two months ago that he would be leaving the business to let it “move forward under new leadership” after a breakdown in relations with the Communication Workers Union (CWU).
There were reports that Thompson had become “increasingly disillusioned” during strike action by CWU members and he was accused of misleading MPs when he denied Royal Mail tracked workers’ productivity.
Thompson’s total salary for 2021/22 came to £753,000 after the annual bonus scheme paid £142,000 due to the meeting of certain annual targets.
The strong financial performance of GLS meant Seidenberg got 95% of his bonus opportunity for 2021/22, leading to an overall salary of £1.67 million, according to Interactive Investor.
IDS has been working to transform Royal Mail to a parcel-led business over the last few years and in May is said that it would switch its investment focus to GLS.
A year ago the Royal Mail Group rebranded to IDS to reflect the growing importance of GLS.
An IDS spokesperson said: “It makes sense for a single CEO to drive that work across the Group on behalf of the Board.”
Seidenberg previously spent 15 years at Deutsche Post DHL before joining GLS in 2020. During his time there he held a variety of logistics, strategy and CEO roles internationally.
He has also been a member of the IDS board since April 2021, responsible for the overall decision making of the group.
In his new role he will be tasked with mending relationships with the CWU and Royal Mail staff and driving the group and the business back to profitability after heavy losses.
The company said he will also appoint CEOs for Royal Mail and GLS responsible for operational management of the two subsidiaries.
Chairman Keith Williams said: “With Royal Mail entering a new phase of its transformation after the ballot on the agreement with the CWU, and GLS on a positive trajectory, we can move both companies forward under Martin’s leadership to deliver change, growth and value across the group.”
Seidenberg said it was “a privilege to be appointed to lead IDS and ensure that both Royal Mail and GLS reach their full potential”.
He added: “With Royal Mail’s brand, unrivalled scale and postmen and women connecting every household and business in the country, we have plenty of opportunity ahead of us.
“But we must seize it.”
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