People Moves

Hester To Give Up The Helm Of RBS By End Of 2013 As Bank Eyes Privatisation

Tom Burroughes, Group Editor, London, 13 June 2013


Stephen Hester, chief executive of Royal Bank of Scotland, the
part-state owned bank that is parent of Coutts, is stepping down later this
year after a five-year stint in the role that saw him at the helm in the wake
of the 2008 financial crash.

Some media reports claimed Hester was forced to step down; a
statement from the bank however pointed to how the bank, which had been one of
the worst-hit firms in the credit crunch, has made “huge progress” since under
his watch. Hester said RBS is now in a position to move back into full private

“The Board believes that an orderly succession process will
give a new CEO time to prepare the privatisation process and to lead the bank
in the years that follow. Stephen was unable to make that open-ended commitment
following five years in the job already,” a statement from RBS yesterday said.

RBS will search for a successor immediately; Hester will
stay in post until December this year to “ensure a smooth handover, unless a
successor is in post before then”, the bank said.

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