Royal Mail chief Rico Back quits 'with immediate effect'

Janet Brum · Post by **Janet Brum** » 15 May 2020, 09:07

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Royal Mail's chief executive Rico Back has quit with immediate effect after less than two years in the top job.

His sudden departure comes as the group revealed that revenue from UK parcels, international and letters fell by £22m in April when compared to the same month last year.

He will be replaced by a duo of Keith Williams, who becomes interim executive chairman, and Stuart Simpson, who will be the chief executive until a permanent replacement can be found.

In a statement, Mr Back said: "It has been a privilege to lead a company that is so much a part of UK life at this crucial time in its history.

"I am proud of what I, together with our dedicated and loyal team, helped to build in Royal Mail and GLS.

"I look forward to seeing Royal Mail transform into a parcels-led, international delivery company, that continues to touch the lives of millions across the world."

Chairman Keith Williams said: "Rico Back has made a significant contribution to the evolution of our business over his 20 years with us, particularly in building our international parcels business and developing our group strategy, which recognised the urgent need for change to create a sustainable business for the future.

"On behalf of the board, I would like to extend my thanks to Rico and wish him well in the future."

cubanpete · Post by **cubanpete** » 15 May 2020, 09:17

His sudden departure comes as the group revealed that revenue from UK parcels, international and letters fell by £22m in April when compared to the same month last year.

Wow, either parcels are not the future or something doesn't quite add up. April seemed busy to me.

renrag40 · Post by **renrag40** » 15 May 2020, 09:19

Yeah Rico thanks....... thanks for nothing!

Post by **blue1873** » 15 May 2020, 09:47

I'm quite sure the bulk of the workforce will be glad to see the Back of him .
Surely there will be no golden goodbye handshake this time

Post by **the.postman** » 15 May 2020, 09:50

£790,000 pay and benefits package plus bonus. £6 million golden hello. What's his golden goodbye going to be. He wasn't working in an unsafe environment. Not a key worker, won't be missed.

Cliff Weight, director of Sharesoc got it right.....'This is truly a case of lions being led by a donkey.'

Jefferson Starfish · Post by **Jefferson Starfish** » 15 May 2020, 10:28

cubanpete wrote:His sudden departure comes as the group revealed that revenue from UK parcels, international and letters fell by £22m in April when compared to the same month last year.

Wow, either parcels are not the future or something doesn't quite add up. April seemed busy to me.

There's been higher costs due to CV-19, but I think over the last few weeks we've seen what the future holds for RM.

Reduced letter volumes = less revenue from that side of the business, while the extra parcels haven't made up for that loss, due to more OT being paid(hence the recent OT ban).

So for the business to survive, the workforce and USO for letters needs to be pruned.

solar_plexus · Post by **solar_plexus** » 15 May 2020, 12:45

blue1873 wrote:I'm quite sure the bulk of the workforce will be glad to see the Back of him .
Surely there will be no golden goodbye handshake this time

Quits with immediate effect but will be paid up to 15 August 2020 in lieu of notice - £450,000, effectively a golden goodbye.

Post by **postareale** » 15 May 2020, 13:41

Here are full details on Rico's Golden Parachute:

) Rico Back

Remuneration: Rico Back will be on garden leave until 15 August 2020. During this period, he will receive his salary and benefits. Following this Rico Back will receive 9 equal monthly payments, totaling £480,000, which represents 9 months' pay in lieu of notice. These payments will be reduced by any alternative paid employment that Rico Back receives. There will be no cash bonuses or share awards in respect of 2019-20 or 2020-21. Rico Back has one unvested Deferred Share Bonus Plan award awarded in 2018 (52,243 shares), relating to performance year 2017-18, and due to vest in June 2021. This award will vest in line with the scheduled timescales and subject to the plan rules. Rico Back's unvested Royal Mail Long-Term Incentive Plan (LTIP) awards will lapse. Rico Back has one unvested award under the GLS LTIP 2017, which was awarded prior to his appointment as Group CEO. Tranche 1 of this GLS LTIP met its performance conditions in 2017-18 and will vest in July 2020 in line with the terms of the plan (€70,812 and 10,668 shares). Tranche 2 relating to performance year 2018-19 was waived by Rico Back in 2019. Tranche 3, relating to performance year 2019-20 is due to vest in July 2020, subject to performance conditions and the plan rules. There are no further awards outstanding under the GLS LTIP. The Remuneration Committee considers that the above treatment of Rico Back's incentive payments and awards to be appropriate and in line with the Directors' Remuneration Policy. Rico Back will receive a capped contribution of £50,000 (excluding VAT) towards legal fees incurred in connection with his departure; and a capped contribution of £25,000 (excluding VAT) towards outplacement support. Rico Back is not eligible for any further payments for loss of office. All Rico Back's Royal Mail earnings (including bonus payments) are subject to UK tax law. More information will be set out in the 2019-20 Directors' Remuneration Report.

ii) Keith Williams

Remuneration: As Non-Executive Chairman of Royal Mail Group, Keith Williams currently receives a fee of £300,000 per annum. This fee will remain unchanged during the period that he is Executive Chairman. Keith Williams will not participate in the Annual Bonus (cash or Deferred Share Bonus Plan), LTIP, benefit programme or any Group pension scheme.

Bottom line: Royal Mail's Comm Chief has packaged it all up in Orwellian Doublespeak, so it looks like Rico is only paid until August 15th when he is actually receiving a full year's salary. Plus vested bonuses galore! Beggars belief!

wazer · Post by **wazer** » 15 May 2020, 13:54

All top bosses are saying how well hes done,so why hes going.If we performed like that we woukd b sacked.

Decky Boy · Post by **Decky Boy** » 15 May 2020, 14:24

Well done Terry, Dave et al... your tenacity, indefatigability and sense of vocation has won through (and I knew it would ! ) There is no place in this business for charlatans, fly by nights and bullies. I absolutely don't think Stewart Simpson is the man for the job...but if he is sitting down and listening to us....then that's a start.

Let's hope this is the start of a new beginning ....

Mr Rush · Post by **Mr Rush** » 15 May 2020, 14:55

Jefferson Starfish wrote:So for the business to survive, the workforce and USO for letters needs to be pruned.

That's the kind of big-brained, sheer business talent, white hot heat of the technical revolution, out-of-the-box thinking RM will pay big bucks for. But you gave it away for free.

Jefferson Starfish · Post by **Jefferson Starfish** » 15 May 2020, 15:02

Mr Rush wrote:
Jefferson Starfish wrote:So for the business to survive, the workforce and USO for letters needs to be pruned.
That's the kind of big-brained, sheer business talent, white hot heat of the technical revolution, out-of-the-box thinking RM will pay big bucks for. But you gave it away for free.

Hey, i'm that kind of gal! Lol

clashcityrocker · Post by **clashcityrocker** » 15 May 2020, 15:43

Decky Boy wrote:Well done Terry, Dave et al... your tenacity, indefatigability and sense of vocation has won through (and I knew it would ! ) There is no place in this business for charlatans, fly by nights and bullies. I absolutely don't think Stewart Simpson is the man for the job...but if he is sitting down and listening to us....then that's a start.

Let's hope this is the start of a new beginning ....

Indefatigability? Are you George Galloway in disguise?
Could you be any more fawning if you tried?

Celgar · Post by **Celgar** » 15 May 2020, 16:43

Keith Williams has too many jobs on the go so shouldn't really be in the executive plus he has previously screwed the workers at BA. I think Stuart Simpson has been on the executive for nine years so that rules him out for becoming the CEO. I wonder if they will select the other German in RM who also refuses to domicile in the UK as the new CEO........

guardianangel · Post by **guardianangel** » 15 May 2020, 17:02

So glad he's gone,what did worry me today was the CWU statement,they seemed quite pleased they secured a one time payment of a £200 bonus,

3 weeks at xmas we get £200 bonus , 8 weeks with twice as many parcels and working twice as hard under unsafe conditions for me it should be £200 a month for as long as this continues,letters might have lost 22 million but i'd love to see how much they are making from parcels.Just remember supermarkets are giving their employees 10% on top of their hourly rate which they review each month for as long as covid is on going. The top team in the CWU have been lacking for a long time ,Royal Mail have been rolling them over for the last couple of years. Just unhappy tonight they way posties are thought so little of.