TIDMRMG

RNS Number : 1574L

Royal Mail PLC

11 January 2021

Royal Mail plc

(Incorporated in England and Wales)

Company Number: 8680755

LSE Share Code: RMG

ISIN: GB00BDVZYZ77

LEI: 213800TCZZU84G8Z2M70

Royal Mail plc

11 January 2021

This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No 596/2014.

DIRECTORATE CHANGES

The Board of Royal Mail plc (RMG.L) today announces the following senior executive appointments.

Simon Thompson, Non-Executive Director of Royal Mail plc, becomes Chief Executive of the UK business with effect from today.

Martin Seidenberg, Chief Executive of GLS, will join the Royal Mail plc Board on 1 April 2021.

Mick Jeavons, interim Chief Financial Officer for the Group since May 2020, will continue in that position on a permanent basis and will join the Royal Mail plc Board as an Executive Director with immediate effect.

As a result of these changes Stuart Simpson, who has been acting as interim Chief Executive of the UK business since May 2020, will leave Royal Mail at the end of January following a short handover period.

Keith Williams, who has been acting as interim Executive Chair of the Group since May 2020, will revert back to being Non-Executive Chair from the same date.

Announcing these changes, Keith Williams said,

"Royal Mail in the UK is in a period of significant transition and needs to move quickly, put the customer at the heart of everything we do, and adapt our business to better serve changing customer needs. Simon has been a Non-Executive Director of the Group since November 2017 and already has significant knowledge of the Group and its operations. He also has a wealth of experience both in digital transformation and customer experience and is ideally placed to lead the opportunity to grow and expand our UK parcels business and to meet our customers' needs across both letters and parcels."

"Martin has made an impressive start as CEO of GLS. Bringing him onto the Group Board allows us to benefit from his detailed knowledge of the parcels sector and reflects the contribution of GLS to the Group."

"We have two excellent leaders in place for each of our businesses, focused on the opportunities which they each have to grow and succeed in the future."

"Mick has been with the Group for 27 years and has served in a variety of senior positions, including as Deputy Group CFO and before that, as Chief of Staff to the Group CEO. His deep experience of the Group and its operations will be invaluable."

"The Board would like to congratulate all three on their appointments and extend its thanks to Stuart for his significant contribution to Royal Mail over the last eleven years, in particular for acting as interim Chief Executive of the UK business over the last eight months. We all wish him well as he develops his career outside Royal Mail."

Commenting on his appointment, Simon Thompson said, "Against the backdrop of a challenging year, our colleagues have once again demonstrated the invaluable service they provide for our communities up and down the country. Looking ahead, we need to build on the great trust we have on the doorstep. We need to develop a razor-sharp focus on the customer, making sure our services are delivering exactly what our customers need and want. And we need to explore new opportunities for growth. We now have a unique opportunity to grow our business, and I look forward to working with our colleagues and stakeholders to take this great company forward."

Stuart Simpson said, "It has been my privilege to lead Royal Mail in the UK in the last eight months, particularly in such trying times. It is a tremendous company with fantastic people. I wish Simon and all my colleagues the very best success for the future."

This announcement is made in accordance with Listing Rule 9.6.11R. There are no other details required to be disclosed pursuant to Listing Rule 9.6.13R.

In accordance with Section 430(2B) of the Companies Act 2006, the relevant disclosures will be made in the 2020/21 annual report.

Notes to Editors:

1. Simon Thomson has extensive business experience and a proven record in customer experience and the digitisation of businesses . He was most recently Chief Product Officer at Ocado Group plc and has previously held customer focused positions at Wm. Morrison Supermarkets Plc and HSBC, as well as other digital companies such as Apple Inc. and lastminute.com .

Simon will transition from his Non-Executive Director role to Chief Executive of the UK business immediately. Further detail of Simon's remuneration, which is in line with the Group Directors' Remuneration Policy, will be disclosed as appropriate in the 2020/21 annual report. His base salary is GBP525,000 and a pension allowance of 13.6%.

2. Martin Seidenberg has extensive logistics experience. He joined GLS in March 2015 from DHL and was appointed CEO of GLS in May 2020. He will join the Board in April 2021. Further detail of Martin's remuneration, which is in line with the Group Directors' Remuneration Policy, will be disclosed as appropriate in the 2020/21 annual report. His salary will be EUR580,000 and a pension allowance of 13.6%.

3. Mick Jeavons is a chartered accountant and has served in various senior roles at Royal Mail over 27 years, including Corporate Finance Director at the time of the IPO in 2013 and then as Chief of Staff to the Group CEO. He became Deputy Group CFO in 2018 before being appointed interim Group CFO in May 2020. He will join the Board with immediate effect.

Further detail of Mick's remuneration, which is in line with the Group Directors' Remuneration Policy, will be disclosed as appropriate in the 2020/21 annual report. His salary is GBP420,000 and a pension allowance of 13.6%.

In addition to the fixed remuneration, all three executive directors will be eligible to participate in the Group's short-term and long-term incentive plans which each have a maximum award value of 150% of salary.

4. Keith Williams' remuneration as Non-Executive Chair will remain at GBP300,000. He received no additional remuneration while acting as interim Executive Chair for the past eight months.

5. Stuart Simpson - the Remuneration Committee determined that the following arrangements are fair and reasonable, consistent with the Group Directors' Remuneration Policy and in line with Stuart's contractual entitlements:

   --    Until 31 January 2021, Stuart will continue to receive his normal salary and benefits. 

-- Following this he will receive 12 equal monthly payments, totalling GBP450,000, which represents 12 months' pay in lieu of notice. These payments will be reduced by any alternative paid employment that he receives.

-- He will be eligible for any 2020-21 bonus, time pro-rated for service, should one be paid. Any bonus would be at the discretion of the Remuneration Committee including their assessment of UK performance at the end of the current financial year.

-- Stuart will be conferred eligible leaver status and retain certain share awards post his termination:

- one unvested Deferred Share Bonus Plan (DSBP) award, awarded in 2018 (56,350 shares), relating to performance year 2017-18 and due to vest in June 2021.

- three unvested Royal Mail Long-Term Incentive Plan (LTIP) awards which will continue to vest over the original vesting period i.e. there is no acceleration of vesting, and the awards will remain subject to a) malus (i.e. the potential claw-back of any unvested element), b) the future satisfaction of performance measures and c) time apportionment based on service.

-- Consistent with the Group Directors' Remuneration Policy, there will be a requirement to hold shares (worth up to two times salary) for two years following termination. This holding requirement will apply to shares that subsequently vest under his DSBP and LTIP awards.

-- Stuart will receive a capped contribution of up to GBP8,500 (excluding VAT) towards legal fees incurred in connection with his departure and a capped contribution of up to GBP50,000 (excluding VAT) towards outplacement support.

   --    There are no further payments for loss of office. 

6. The Board of Royal Mail plc will have nine directors from April 2021, consisting of three executives, five independent Non-Executive Directors and the independent Chair. Five are male and four are female.

Enquiries:

Investor Relations

John Crosse

Phone: 07483 390 957

Email: investorrelations@royalmail.com

Royal Mail investor relations line: 020 7449 8183

Media Relations

Jenny Hall

Phone: 07776 993 036

Email: jenny.hall@royalmail.com

Royal Mail press office: press.office@royalmail.com

Company Secretary

Mark Amsden

Phone: 020 7449 8289

Email: cosec@royalmail.com

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements concerning the Group's business, financial condition, results of operations and certain Group's plans, objectives, assumptions, projections, expectations or beliefs with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'targets', 'goal', 'forecasts' or 'estimates' or similar expressions or negatives thereof.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Group's actual financial condition, performance and results to differ materially from the plans, goals, objectives and expectations set out in the forward-looking statements included in this document.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to the Group or any persons acting on its behalf are expressly qualified in their entirety by the factors referred to above. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that the forward-looking statements in this document will be realised; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Subject to compliance with applicable law and regulation, the Group does not intend to update the forward-looking statements in this document to reflect events or circumstances after the date of this document, and does not undertake any obligation to do so.

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END

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January 11, 2021 02:00 ET (07:00 GMT)

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