International Distributions Services plc
(Incorporated in England and Wales)
Company Number: 8680755
LSE Share Code: IDS
12 May 2023
International Distributions Services plc (IDS) today announces that Simon Thompson has informed the Board of his intention to step down as Chief Executive Officer (CEO) of Royal Mail. He believes that, following the negotiators' agreement between Royal Mail and the CWU, it is the right time for the company to move forward under new leadership.
Simon Thompson joined the company as a Non-Executive Director in 2017 and was appointed as CEO of Royal Mail in January 2021.
The Board is in advanced stages of appointing a new CEO, and Simon Thompson has agreed to remain with the business until 31 October 2023 as part of the transition. Chairman of IDS, Keith Williams, will be providing additional oversight and support alongside his Board colleagues through this period. A further announcement will be made in due course.
Keith Williams, Chairman of IDS, said:
"On behalf of the Board, I would like to thank Simon for his significant contribution over more than five years at Royal Mail, both as CEO and previously as a Non-Executive Director of the Board. As CEO, his leadership, resilience and unwavering drive to ensure that Royal Mail transforms for the benefit of our customers means we have set a clear path to turn the business around. We are grateful for his dedication and what he has achieved at the company, and wish him well for the future."
Simon Thompson said:
"I have been incredibly proud to lead Royal Mail during this crucial period in its 507 year history. The changes we have made, the infrastructure we have put in place, and the agreements negotiated with our trade unions mean that Royal Mail now has a chance to compete and grow. That is what I have always wanted, and it is now the right time to hand over to a new CEO to deliver the next stage of the company's reinvention. I would like to thank my team for their support during a difficult and important time of change."
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Notes to Editors:
The Remuneration Committee determined that the following arrangements agreed with Simon Thompson are fair and reasonable, consistent with the Group Directors' Remuneration Policy and in line with Simon's contractual entitlements:
· Simon will continue to receive his normal salary and benefits until 31 October 2023.
· Following this, he will receive seven monthly payments, totalling £289,415.21, which represents six months and twelve days' pay in lieu of notice. These payments will be reduced by any alternative paid employment that he receives.
· He will be eligible for any 2023-24 bonus under the Short Term Incentive Plan for 2023/24, time pro-rated for active 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.
· Simon will be conferred eligible leaver status in relation to one unvested Deferred Share Bonus Plan (DSBP) award, awarded in July 2022 (16,254 shares), relating to performance year 2021-22 and due to vest in July 2025.
· Simon's unvested Royal Mail Royal Mail Long-Term Incentive Plan (LTIP) awards will lapse.
· 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 award.
· Simon will receive a capped contribution of up to £17,500 (plus VAT) towards legal fees incurred in connection with his departure and a capped contribution of up to £50,000 (plus VAT) towards outplacement support.
· There are no further remuneration payments in connection with his cessation as a director or payments for loss of office.
This information is being provided in accordance with section 430(2B) Companies Act 2006.