Royal Mail names Simon Thompson as the new CEO of its UK business

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jan 11, 2021
  • Royal Mail names Simon Thompson as the new CEO of its UK business.
  • The courier company's interim CEO to step down by the end of January.
  • Entain plc says its Chief Executive Shay Segev has decided to exit the role.

Royal Mail plc (LON: RMG) named Simon Thompson as its new Chief Executive Officer for its UK business on Monday. The retail industry veteran has formerly worked at several world-renowned companies, including WM Morrison, Ocado, Apple Inc, Honda, Motorola, and HSBC.

Royal Mail shares opened about 1% down on Monday. At 360 pence per share, the stock has recovered significantly from the low of 125 pence per share in the first week of April 2020.

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At the time of writing, the London-based company is valued at £3.60 billion and has a price to earnings ratio of 163.69.

Royal Mail’s interim CEO to step down by the end of January

The announcement comes at a time when the postal service is facing a significant rise in online parcel deliveries amidst the ongoing Coronavirus pandemic. On April 1st, Royal Mail added, Martin Seidenberg is also scheduled to join the Board. Seidenberg is currently heading its international parcels business general logistics systems.

Royal Mail raised its target for annual revenue in September, but warned that it was likely to still conclude the financial year in loss.

As per the announcement on Monday, interim CEO Stuart Simpson will exit the role by the end of January. Simpson had filled the shoes for Rico Back who stepped down last year in May. During Back’s tenure that spanned over two years, Royal Mail faced retaliation from the unions over its proposed restructuring plan valued at £1.8 billion.

The British multinational struck an agreement with its largest union in December. The deal, as per Royal Mail, will help it expand its footprint in the core parcels segments.

Entain plc says its CEO Shay Segev has decided to exit the role

In separate news from the United Kingdom, Entain plc said on Monday that its CEO Shay Segev had decided to exit the role after a tenure that spanned over only seven months. It was a surprise announcement from the company that rejected MGM Resorts International’s £8.15 billion offer last week.

Chairman Barry Gibson, however, commented on the news on Monday and said:

“This changes nothing with respect to the Board’s view of the recent proposal from MGM Resorts International to acquire Entain.”

Entain plc performed fairly upbeat in the stock market last year with an annual gain of close to 25%. At the time of writing, the British sports betting and gambling company has a market cap of £8.56 billion.

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