Royal Bank of Scotland CEO to Step Down

Joe Goldman |

RBSStephen Hester is resigning as the CEO of the Royal Bank of Scotland (RBS) after almost five years as the chief executive of the bank.

In a news release on the bank’s website, Hester explained that is resignation is all about timing. RBS, which is 81 percent owned by the British government, is about to begin an enormous privatization process. Hester “was unable to make that open-ended commitment following five years in the job already,” and the company believes that a new CEO should lead this grueling, important process.



Hester will receive no bonus for 2013, but will earn £1.6 million in benefits and as much £4 million from long-term incentives. The search for a successor will begin immediately.

Hester spoke positively about his performance as CEO. During his tenure, “we have reduced the bank’s balance sheet by nearly a trillion pounds, repaid hundreds of billions of taxpayer support, and removed the imminent threat that this bank’s size and complexity posed to the UK economy.”

RBS shareholders seem to agree that Hester was a good leader, as shares reacted negatively to the news. The stock dropped 3.14 percent during afternoon trading to $9.91, down 5 percent since shares began trading in the morning.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.49 -0.07 -1.07 839,965 Trade
WFC.P.N Wells Fargo & Company Dep Shs Repstg 1/1000th Perp 24.85 -0.20 -0.80 399,111 Trade

Comments

Emerging Growth

THC Therapeutics Inc

THC Therapeutics Inc is a health and healing company in the cannabis industry. The Company is engaged in developing dHydronator which is used to reduce moisture and effectively dry out…

Private Markets

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…