UK Royal Mail likely to be privatised, say headhunters
Headhunters are telling candidates for a Royal Mail boardroom job that the loss-making postal service is likely to be privatised during the term of the next government.
The approach, made this month, is contentious as the government says it has no plans to sell off the Royal Mail. The Department of Trade and Industry said: “Privatisation of Royal Mail is not on the government agenda.”
One private sector executive approached for the post of marketing director said it was made clear that the main appeal of the job was the opportunity to earn large sums during a sale. “It was all about the share options,” said the executive. “They made clear there was a chance to become a millionaire in the next three or four years. The job is to prepare the company for a possible sale.”
Royal Mail insiders said any promise of share options had not come from the company. Speculation about its future ownership has been mounting for some time, however.
The Communication Workers’ Union is pressing for a pledge not to privatise the group to be included in Labour’s general election manifesto. Allan Leighton, Royal Mail chairman, has said the matter of ownership is one for the sole shareholder, the government, rather than the unions. He is thought to favour the partial sale of Royal Mail to its employees as a way to motivate workers.
Following a restructuring and the loss of 30,000 jobs, Royal Mail’s letters business has returned to profit and is a more obvious candidate for privatisation than three years ago. But the loss-making Post Office network, which includes 8,100 government-subsidised rural offices, is likely to stay in government hands.
Royal Mail confirmed it was looking for a new marketing director. It is expected to hire someone in the next few months.
The recruitment agency that Royal Mail is using has not been named. Paul Rich, Royal Mail’s marketing director, is being moved to another part of the group after a recent management reshuffle by Adam Crozier, chief executive. Mr Crozier has been taking on additional powers since May when he took over the day-to-day running of the letters business from Elmar Toime, deputy chairman.
Last month, Mr Toime also ceded the chairmanship of Royal Mail’s management board to Mr Crozier and is due to quit the company in the next few weeks.
The management board has been slimmed from 11 members to eight to ease decision-making.
Mr Rich, Paul Bateson, logistics manager, and Vanessa Leeson, Parcelforce head, were demoted from the board. Mr Crozier is due to take over responsibility for Parcelforce shortly.
