TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Bailed-out RBS names New Zealand's McEwan as replacement CEO

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By The Associated Press
Saturday, Aug. 3, 2013, 12:01 a.m.
 

Stephen Hester reported his last set of results for bailed-out Royal Bank of Scotland on Friday as he prepares to hand over the reins to New Zealander Ross McEwan.

The state-controlled bank recorded a first-half profit of $811 million, compared with a loss of $3.2 billion in the same period of last year.

RBS on Friday named McEwan, a 56-year-old native of New Zealand, as CEO effective Oct. 1.

The Scottish bank owns RBS Citizens Financial Group, the parent of RBS Citizens Bank of Pennsylvania, which may be partially sold in a public stock offering next year.

Hester, 52, became CEO in October 2008 as the government rescued the bank with a $71 billion capital injection. Fred Goodwin, Hester's predecessor, brought the bank to near-collapse with an aggressive global expansion, which included the ill-fated purchase of Dutch lender ABN Amro.

RBS is now 80 percent owned by British taxpayers.

“RBS's journey from ‘bust bank' to ‘normal bank' is largely done,” Hester said in a statement.

“But no small task remains — to harness the energies and strengths that have driven the bank's recovery, and to take RBS towards the target of being a ‘really good bank' for customers, shareholders and society as a whole.”

Analysts say it's important that RBS has ended the uncertainty over who would replace Hester, who was widely admired for rising to the challenge of steering the institution through the mess left behind by Goodwin, aka “Fred The Shred.”

Hester's resignation in June had been a surprise, and critics wondered whether a banker of some stature could be found to lead the institution through the difficult years to come.

He is widely believed to have been pushed out of the top job at RBS amid a tense relationship with Treasury chief George Osborne. The government has been pushing for the banks to be returned to the private sector as soon as possible — or perhaps a least before it faces re-election in 2015.

McEwan, who heads the bank's retail division, will receive an annual salary of $1.6 million and said he did not wish to be considered for an annual bonus this year or next. He also asked that any award for his work this year be deferred until 2017. Even then, taxpayers must gain value first.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. ATI to benefit from WTO ruling against China in steel case
  2. Cost-cutting at Kraft Heinz extends to refrigerator
  3. Muni bond funds stressed
  4. GNC to convert more stores to franchises as sales, profits slip
  5. Post-Gazette offers voluntary buyouts in bid to avoid layoffs
  6. Kennametal expects to consolidate plants as it shrinks manufacturing in continuing streamlining; profit drops
  7. U.S. asks Supreme Court to reinstate convictions of portfolio managers who won on appeal
  8. Economy’s 2Q best since last year
  9. Home rental prices jumped again in June
  10. Facebook ready to test giant drone
  11. Range Resources cuts workforce 11%