The British government today appointed Donald Brydon, head of a large technology group, as the newchairman of Royal Mail to steer the postal operator through further restructuring, modernisation
and planned partial privatisation.Brydon will join the board of Royal Mail with immediate effect and then replace chairmanAllan Leighton in March. Leighton is stepping down after seven years in the post which saw thecompany gradually improve its performance and financial results but also close down a large numberof post offices and suffer industrial disputes.
Brydon, who will earn £200,000 per year in the new post, been appointed for three years from26 March 2009. He is currently chairman of Smiths Group plc, a global technology group with over20,000 people in over 50 countries, and is also chairman of the London Metal Exchange. Hepreviously worked for many years in the financial services sector, including with Barclays and AXA.
The UK Business Secretary Peter Mandelson said: “Royal Mail is now at a crucial stage in itstransformation as it strives to improve efficiency and deliver an even better service to customers.I’m delighted to have a man with Donald Brydon’s skills and experience to lead the board in thisnext phase. He is a proven business leader and successful chairman.”
“There is no doubt that Royal Mail faces many challenges -the company has a volatile multibillion pound pension deficit and letter volumes are falling dramatically as people turn to email.But the company has a positive future if the right action is taken. Outside investment andmanagement expertise, action on the pension deficit and on regulation is the way to transform RoyalMail and secure its future in public ownership,” the minister added.
Donald Brydon commented: “The Royal Mail is one of Britain’s great organisations and I amhonoured to be asked to lead it in the next phase of its continuing modernisation. There isclearly a big challenge ahead but also great opportunities to meet our customers’ needs. I amdelighted to be joining the board at this time and look forward to a positive involvement whichwill benefit our customers, employees and the taxpayer.”
Commenting on the appointment, Allan Leighton, outgoing chairman, said: “I warmly welcomethis appointment. Donald has a strong track record across a range of business sectors and clearlyhas the skills and experience to support Adam (Crozier) and the team as they take the businessthrough the next crucial stage of its development.”
He added: “It has been a privilege for me to have been the Chairman of Royal Mail for thelast seven years and to have seen the company through a period of enormous change – with aturnaround from losses of more than £1 million every working day to today’s position where all fourbusinesses in the Group are profitable at the same time for the first time in 20 years.”
