Owen Michaelson, non-executive director of Peel Holdings, is to leave Peel to become full-time managing director of UK Coal's property division from 1 August.
Peel is the largest shareholder of UK Coal with a 28.3%. UK Coal also said the current chief executive, Jon Lloyd, and chairman, David Jones, will leave the company as part of a restructuring to split the coal and property operations.
Gareth Williams, group mining director, will become managing director of the mining division.
An executive chairman will be appointed, accountable for the managing directors of the two businesses.
Shares in UK Coal rose more than 5% to 38p, valuing the company at £107.75m.