- Henry Staunton removed as chairman
- Government seeks Horizon scandal resolution
- New legislation for victim compensation
After a year as Post Office chairman, Henry Staunton was removed due to increasing tensions with the government shareholders.
Henry Staunton, appointed chairman of the Post Office in December 2022 following a long tenure in FTSE boardrooms, was informed this weekend by Business Secretary Kemi Badenoch of his replacement due to growing strain with the government. Ms. Badenoch reportedly relayed the decision by phone on Saturday afternoon.
The search for a new chairman begins as the government pushes legislation to hasten compensation for sub-post managers wrongfully convicted by flawed Horizon software.
Sources indicate recent tensions between the Post Office chairman and the government, particularly over selecting a senior independent director to replace the retiring Ben Tidswell. Mr. Staunton and colleagues supported Andrew Darfoor, but the government preferred a Whitehall insider for better corporate governance.
Last year, tensions over CEO Nick Read’s compensation related to the Horizon investigation arose, but the scandal did not directly cause Mr. Staunton’s departure.
Kemi Badenoch stated, “Given heightened scrutiny, a leadership change was necessary, and we’ve mutually agreed to part ways.” A government spokesperson confirmed the mutual decision.
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Post Office Leadership and Compensation Overhaul
The appointing committee will appoint an interim chair and follow it with a formal recruitment process for a new chair, adhering to the Governance Code for Public Appointments.
Mr. Staunton, unreachable for comment on Saturday, previously chaired Phoenix Group and WH Smith.
The government seeks tighter control over the Horizon crisis fallout, with Rishi Sunak promising legislation for immediate dismissal and compensation. Sir Wyn Williams’s inquiry compensates over 2,500 victims, totaling nearly £150 million.
Additional victims have emerged since the ITV drama “Mr. Bates vs. the Post Office,” raising the total cost to around £1.5 billion. Fujitsu and Ms. Badenoch are negotiating compensation for affected sub-post managers.
Ms. Badenoch wrote, “I’m committed to ensuring justice for affected postmasters.” The UK government’s new legislation aims for swift compensation and conviction overturns.
Former CEO Paula Vennells resigned amidst pressure, coinciding with the latest leadership change. Postal Affairs Minister Kevin Hollinrake advocates for prosecuting those involved in the scandal and cover-up.
