This morning Royal Mail (LSE: RMG) announced that the chairman who oversaw its 2013 flotation, Donald Brydon, has expressed his intention to step down from his position later on this year.
Mr Brydon, who previously held the title of CEO and Chairmen at BZW Investment Management and at AXA Framlington, was appointed as Royal Mail chairman in March 2009. The boardroom veteran has also chaired other FTSE 100 companies including Smiths Group and remains the chairman of Sage Group.
Mr Brydon sited the groups current stability as motivation to end his tenure:
I am proud of what Royal Mail has achieved as a company in the last six years. Our transformation is well underway and we are now a FTSE 100 listed company. I feel that now is the right time for me to make this decision.
Mr Brydon will continue his duties until at least the summer annual general meeting. The Senior Independent Director, Oma Ni-Chionna, has began the search for a successor.
Moya Greene, Group Chief Executive, paid homage to Mr Brydons tenure:
Donald has played a key role as Chairman during one of the most eventful periods in our history. I would like to personally thank him for his support and counsel.
The Senior Independent Director, Orna Ni-Chionna, has initiated a process to appoint his successor and Donald will continue to chair the Board until at least the AGM in the summer.
The euphoria created by the easy-gains after the flotation seems to have died down. Weaker than expected parcel growth sent shares diving nearly 25% last year, a 22% underperformance of the FTSE 100. In a trading update released last week, the company announced that growing parcel sales had not transformed into revenue growth due to the increasingly competitive UK delivery business.
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