Royal Bank of Scotland is grooming Nathan Bostock, the state-backed lender’s restructuring boss, for the top job as part of long-term plans to replace chief executive Stephen Hester.
Sir Philip Hampton, the RBS chairman, earlier this month called a meeting of non-executive directors to discuss that bank’s succession planning, where he presented a list of prospective candidates.
Mr Bostock, 51, who will be taking over as finance director in October, is believed to be the leading internal candidate.
A number of outsiders are also being considered, with Standard Chartered finance director Richard Meddings, 54, reported to be a front-runner. National Australia Bank chief executive Cameron Clyne, 45, is also thought to be on the list.
Sir Philip’s decision to hold the meeting is understood to have been part of good corporate governance to ensure the bank has a strong succession plan.
None of the potential candidates have been approached and there is no suggestion that Mr Hester, 52, who has been in the job almost four years, plans to leave.
In an interview earlier this month, he signalled that he would want to be in place to begin the privatisation process, which is unlikely to be until next year at the earliest. The Chancellor recently said the Government would outline its exit plans this summer.
Mr Bostock joined RBS in 2009 as head of restructuring from Abbey National, now called Santander, where he had worked closely with Mr Hester. Two years later he accepted a senior job at Lloyds Banking Group before RBS persuaded him to stay.
Earlier this month, he was promoted to finance director, replacing Bruce van Saun, who will be taking charge of RBS’s US bank Citizens in October.Mr van Saun, 54, would have been a leading internal candidate himself but has let it be known he wants to move back to his native US.
Although Mr Bostock is respected within the industry and has a good relationship with the regulators, bank sources said he will still have to “prove himself” as finance director if he wants the top job.
With the list of untainted senior UK bankers now relatively short, RBS is expected to look to Australia and Canada.
Mr Meddings is one of the few top UK bankers to have emerged largely unscathed by the crisis, although the emerging markets lender was damaged last year by allegations that it breached US sanctions with Iran.
It paid a $327m (£216m) settlement to US regulators. A potential sale of the taxpayer’s 81pc stake in RBS, amassed after the state injected £45bn into the lender, could begin before the shares recover from their current 327p level to the break-even price of 500p.
The Government is said to be considering proposals for a share giveaway to the public. However, Ed Balls, the shadow chancellor, has warned “a giveaway or a loss-making firesale at the current share price would add billions to the national debt at a time when poor economic growth already means borrowing isn’t coming down”.
He added: “It’s no wonder Treasury officials are alarmed at the idea because George Osborne is playing a dangerous game here. If he once again puts politics before economics he risks leaving a huge hole in the public finances.”
Last week, the International Monetary Fund said any sale of shares in either RBS or Lloyds, which is 40pc owned by the state, should be done “in a way that maximises value for taxpayers”.
Lloyds shares are already roughly at the 61.2p break-even price and the sale process is expected to begin as early as this year. RBS declined to comment.
telegraph.co.uk
Sir Philip Hampton, the RBS chairman, earlier this month called a meeting of non-executive directors to discuss that bank’s succession planning, where he presented a list of prospective candidates.
Mr Bostock, 51, who will be taking over as finance director in October, is believed to be the leading internal candidate.
A number of outsiders are also being considered, with Standard Chartered finance director Richard Meddings, 54, reported to be a front-runner. National Australia Bank chief executive Cameron Clyne, 45, is also thought to be on the list.
Sir Philip’s decision to hold the meeting is understood to have been part of good corporate governance to ensure the bank has a strong succession plan.
None of the potential candidates have been approached and there is no suggestion that Mr Hester, 52, who has been in the job almost four years, plans to leave.
In an interview earlier this month, he signalled that he would want to be in place to begin the privatisation process, which is unlikely to be until next year at the earliest. The Chancellor recently said the Government would outline its exit plans this summer.
Mr Bostock joined RBS in 2009 as head of restructuring from Abbey National, now called Santander, where he had worked closely with Mr Hester. Two years later he accepted a senior job at Lloyds Banking Group before RBS persuaded him to stay.
Earlier this month, he was promoted to finance director, replacing Bruce van Saun, who will be taking charge of RBS’s US bank Citizens in October.Mr van Saun, 54, would have been a leading internal candidate himself but has let it be known he wants to move back to his native US.
Although Mr Bostock is respected within the industry and has a good relationship with the regulators, bank sources said he will still have to “prove himself” as finance director if he wants the top job.
With the list of untainted senior UK bankers now relatively short, RBS is expected to look to Australia and Canada.
Mr Meddings is one of the few top UK bankers to have emerged largely unscathed by the crisis, although the emerging markets lender was damaged last year by allegations that it breached US sanctions with Iran.
It paid a $327m (£216m) settlement to US regulators. A potential sale of the taxpayer’s 81pc stake in RBS, amassed after the state injected £45bn into the lender, could begin before the shares recover from their current 327p level to the break-even price of 500p.
The Government is said to be considering proposals for a share giveaway to the public. However, Ed Balls, the shadow chancellor, has warned “a giveaway or a loss-making firesale at the current share price would add billions to the national debt at a time when poor economic growth already means borrowing isn’t coming down”.
He added: “It’s no wonder Treasury officials are alarmed at the idea because George Osborne is playing a dangerous game here. If he once again puts politics before economics he risks leaving a huge hole in the public finances.”
Last week, the International Monetary Fund said any sale of shares in either RBS or Lloyds, which is 40pc owned by the state, should be done “in a way that maximises value for taxpayers”.
Lloyds shares are already roughly at the 61.2p break-even price and the sale process is expected to begin as early as this year. RBS declined to comment.
telegraph.co.uk
No comments:
Post a Comment