Royal Mail boss Moya Greene to retire

Moya Greene will step down as Royal Mail chief executive in June after more than eight years.

The Canadian will be replaced by Rico Back, who runs its European subsidiary, General Logistics Systems (GLS).

Ms Greene oversaw the privatisation of Royal Mail in 2013 and has "transformed" the business, said chairman Peter Long.

The former Canada Post boss said it had been a "great privilege to serve as CEO of this cherished UK institution".

Ms Greene will depart with almost £1m - a cash payment equivalent to 12 months' base salary, which was £547,800 last year, as well as a payment equivalent to her expected annual bonus of £367,000.

Mr Back said he was very pleased to "lead a company which is so much a part of the fabric of the UK" and thanked Ms Greene for her support.

After stepping down as chief executive, Ms Greene will stay on until 14 September to ensure an orderly handover, Royal Mail said.

She is a director of easyJet, a trustee of the Tate, and will become a director of Rio Tinto later this year.

Shares in Royal Mail have had something of a rollercoaster ride since its privatisation, when shares were priced at 330p.

The stock soared to almost 460p in their first day of trading, sparking criticism that the government had sold its stake too cheaply.

Royal Mail shares peaked at just over 600p in 2014 before falling as low as 376p last September.

The stock was trading flat on Friday at 563p, valuing the company at £5.6bn.

In other executive moves, Sue Whalley will be promoted to run Royal Mail's UK post and parcels operation and will join the board.

Mr Long said Ms Whalley took the lead in reaching Royal Mail's recent agreement with the CWU and was heavily involved in the privatisation process.