RBS rings the changes with new directors
Royal Bank of Scotland announced the appointment of three non-executive directors yesterday, in a move that will intensify rumours that CEO Sir Fred Goodwin and chairman Sir Tom McKillop will soon depart the troubled bank.
Stephen Hester, Arthur Ryan and John McFarlane will join the board from the beginning of October. Of the three, Hester, with a wealth of experience in British banking, is the most likely replacement for embattled chairman Sir Tom McKillop, or even Goodwin himself.
Hester, who stepped down yesterday as deputy chairman of Northern Rock, has served as finance director of Abbey and oversaw the sale of the bank to Spain’s Banco Santander.
Ryan and McFarlane will also bring much needed international experience to RBS, which has expanded its overseas operations from 15 to 50 countries in a year.
Industry insiders are privately speculating that McKillop, along with senior independent director Bob Scott, will be the first heads to roll after the bank’s dismal summer.
McKillop is seen as inexperienced in finance, while Scott would be ripe for rotation under the policy of maximum nine-year directorships.
One banking veteran said: “Sir Fred will probably stay on to complete the ABN Amro deal. But Bob Scott and McKillop could be on their way out.”
Guy Jubb, head of corporate governance at shareholder Standard Life Investments, said: “These changes demonstrate that the RBS board is getting to grips with its governance.”