Royal Mail Group (LON:RMG) is close to naming the boss of its parcels arm as its next chief executive officer, Sky News has revealed. The report comes with Moya Greene preparing to step down following an eight-year tenure at the postal operator, marked by a controversial £3.3-billion privatisation.
Royal Mail’s share price has been little changed in today’s session, having inched 0.04 percent higher to 556.80p as of 08:46 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.15 percent higher at 7,194.62 points. The group’s shares have added a little over 34 percent to their value over the past year, as compared with a two-percent dip in the Footsie.
CEO succession preparations
Sky News reported yesterday that Royal Mail’s board had been discussing in recent weeks a move to appoint Rico Back, the head of the group’s parcels delivery arm GLS as CEO Moya Greene’s replacement as soon as this year. One source close to the group board told the newswire that the announcement was likely to be made before the company reports its full-year results on May 17. One City insider, however, cautioned that it was not yet certain that Back would be appointed to the role.
Analysts on Royal Mail
The 16 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 495.00p on the shares, with a high estimate of 605.00p and a low estimate of 300.00p. As of April 6, the consensus forecast amongst 18 polled investment analysts covering the privatised postal operator advises investors to hold their position in the company.