Royal Mail boss Simon Thompson quits with £700,000 payoff after union war

Simon Thompson will officially retire in the fall. Photo: ROYAL MAIL GROUP/AFP via Getty Images

Simon Thompson has been paid a discount of up to £700,000 after stepping down as Royal Mail boss after a heated battle with union leaders.

Mr Thompson to formally step down as UK postal monopoly is on the hunt for its third chief executive in just over two years. working conditions.

Mr. Thompson, a former Apple and Ocado executive, was the union's coordinator. leader's anger. He was personally attacked by trade unionists for his handling of a labor dispute.

His decision to step down came just weeks after Royal Mail agreed a deal with CWU that ended the worst strike campaign since the company was privatized in 2013.

Mr Thompson said: “I am incredibly proud to have led the Royal Mail during this crucial period in its 507 year history. The changes we've made, the infrastructure we've built and the agreements we've made with our unions means that Royal Mail now has a chance to compete and grow.

“That's what I've always done. wanted, and now is the right time to hand over a new CEO to implement the next phase of reimagining the company. I would like to thank my team for their support during a difficult and important time of change.”

Mr Thompson is entitled to an annual salary, shares already transferred, legal assistance and «outplacement support» and a share of this financial year's short-term bonus, which could be up to £90,000 if targets are met. strike.

However, the bonus will be paid at the discretion of the board.

Dave Ward, CWU general secretary, said: «[Mr. Thompson] was also one of the key people responsible for the horrendous 'our business is to work' mantra when an employer openly and ruthlessly attacked its employees, including the development of a culture of imposition that has now created a quality of service…failures on a scale that threatens the future of the company.”

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— The CWU (@CWUnews) May 12, 2023

Mr. International Distributions Services, the parent company of Royal Mail, should now review its positions.

He said: “We acknowledge that the CEO was just one of the top executives responsible for the unacceptable actions and behavior of managers across the UK throughout this dispute. Further changes in the leadership of the Royal Mail Group are vital.»

Royal Mail, IDS, said it was in the «advanced stage» of appointing a replacement for Thompson.

Keith Williams, former Boss British Airways and the chairman of IDS will be forced to find the right person after the loss of two CEOs in a relatively short time frame.

Rico Baek stepped down as chief executive of Royal Mail in May 2020 on a £1m reward after having been in charge of the firm for about two years.

Mr. Mr. Williams said: “As CEO, [Mr. Thompson's] leadership, resilience and unwavering commitment to transforming Royal Mail for the benefit of our customers means we have set a clear path for business change.

«We are grateful for his dedication and what he has achieved with the company and wish him all the best for the future.»