Alison Rose was named the chief executive officer for the Royal Bank of Scotland on Friday. Her appointment makes her the first woman to hold the top position for a lender in the United Kingdom.
Rose will replace Ross McEwan as the CEO of the state-backed lender. McEwan stepped down to accept a job at National Australia Bank.
Rose is a 27 year veteran of the Royal Bank of Scotland and takes the helm at one of the most critical times in the bank’s existence. The bank is preparing for the potential fallout Britain and the European Union part ways without a deal next month.
Other challenges for Rose include shoring up the reputation of the bank and once again see RBS controlled by private hands. The bank has been backed by the state since needing to be rescued over a decade ago to the tune of 45 billion pounds.
Howard Davies, the RBS chairman, says the company searched both internally and externally for their next CEO and he is certain they chose the right woman for the job.
Alison Rose will receive $1.38 million annually in her new position. She will also receive an allowance equal to her salary. This amount is about ten percent more than McEwan received as CEO.
The pension Rose receives will be ten percent of her annual salary. This is much less than McEwan who received more than $400,000 annually. British banks have received criticism in the past due to the disparity between pensions for executives and employees.
The journey for Rose with RBS began nearly three decades ago as a trainee. She is also known for her work with a review by the government into the barriers that restrict the progress of women in business.
The appointment by Rose meant two women now hold top executive roles at RBS. Katie Murray is the company’s Chief Financial Officer.
McEwan, who held the top position at RBS since 2013, informed the company he would be stepping aside in April.
The intent of the British government is for RBS to be fully privatized by 2024. However, the uncertainty with the Brexit vote has delayed further attempts to sell off the 62 percent interest the government has in the bank. This situation casts doubt on the 2024 timetable.
Dil Bole Oberoi
