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[February 05, 2014]
Insurer RSA taps former RBS boss Hester as chief executive
(City A.M. (UK) Via Acquire Media NewsEdge) STEPHEN Hester has been announced as the new chief executive of troubled insurer RSA. He will receive a £950,000 pay packet and a possible bonus worth 300 per cent of his salary in the first year.
Hester takes over from Martin Scicluna, chairman of the group, who took on the role of interim chief executive when Simon Lee left the company in December. Scicluna will revert to his non-executive role.
Lee resigned shortly after it emerged that RSA was facing a huge shortfall in its Irish business. Originally estimated to be under £100m, the eventual cost was closer to £200m.
Hester, the former chief executive of Royal Bank of Scotland (RBS), said he was "delighted" to have been asked to join RSA.
"I look forward to getting started immediately and working closely with the board on the business review to ensure that we are able to deliver strength and value to all of our stakeholders and re-emerge as an attractive solidly performing group," he said, adding that the insurer had "not lived up to our stakeholders' expectations and performed to our true potential," in recent months.
RSA's share price jumped 2.86 per cent to 99p at market close, a sign of confidence in the new appointment.
Scicluna praised Hester's "outstanding track record of transforming the performance of businesses" and said he has been unanimously appointed.
(c) 2014 City A.M.
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