Crozier 'in line' for Royal Mail
Adam Crozier, the former chief executive of the Football Association who resigned after a bust-up with football club chairmen, is thought to be a candidate to run Royal Mail.
Allan Leighton, the Royal Mail chairman who is also a non-executive director of Leeds United, is expected to make a decision on the position in the next few days. Four candidates are on his list, though Mr Leighton yesterday declined to comment on whether Mr Crozier was one of them.
Mr Crozier left the FA five weeks ago after a dispute with Premier League chairmen, who wanted a bigger say in how the FA’s revenues are distributed.
Mr Crozier, 38, became chief executive of Saatchi & Saatchi, the advertising agency, at the age of 30 and moved to the FA nearly three years ago.
The current Royal Mail chief executive, John Roberts, is to retire this month. His decision to quit followed quickly after Mr Leighton’s appointment as chairman this spring.
Mr Crozier’s name has emerged as the troubled postal group faces the threat of being broken up. The industry regulator is to consider plans to separate postal deliveries from the rest of the group to stimulate competition.
A break-up is being urged by Postwatch, the consumers’ group, because it believes more rival organisations will come into the market if the delivery network is separate.
Postcomm, the industry regulator, has said it will look at the move next year after it has pushed through new price controls for postage and pricing for rivals’ access to the existing network. It is believed that if too few competitors come forward then the regulator would be keen to consider a break-up to encourage new entrants.
However, a break-up would be fiercely resisted by Mr Leighton, who is said to be angry at other people thinking they can run the business. He has begun a three-year turnaround programme to stem losses, which will see 30,000 jobs cut from the 200,000 workforce. The postal unions will also oppose a break-up.
Royal Mail is in talks with the regulator over new prices for first and second-class stamps and over prices it can charge other companies to use its network. Postcomm is to allow a penny increase in stamp prices but it has also asked for the prices of other Royal Mail services to be reduced. Mr Leighton has said that this will cost Pounds 460 million and wreck the recovery plan. He has said that he will oppose the plans with the Competition Commission and a judicial review if necessary. A final decision from Postcomm is expected next month.
The Government will today announce a Pounds 450 million package of help for rural post offices. Money will be allocated over the next three years to maintain the loss-making network. Royal Mail says that, without the cash, up to 80 per cent of the 8,500 country post offices face closure.
