Bailed-out RBS names New Zealand's McEwan as replacement CEO
By The Associated Press
Published: 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.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Marcellus shale driller Noble Energy Inc. sinks roots into Pittsburgh
- ‘Fresher, different, lot more fun’ guide changes at Kings Family Restaurants
- Sbarro again files for bankruptcy reorganization
- Minorities crucial to filling Marcellus shale gas drilling jobs
- Weather worsens McDonald’s sales struggles
- EBay shareholders urged to reject Icahn picks
- Stocks dip on gloomy data from Asia
- 1,500 Bangladesh factories set to be inspected by August
- CVS suit could be test case
- Harsh winter sets back Western Pa. maple harvest
- Samsung introduces free streaming radio service