What’s next for Stephen Hester?
WITH Zurich’s takeover of RSA looking increasingly likely, the question remains: What happens to Stephen Hester?
Hester, the former boss of RBS, became chief executive of RSA in February 2014. Since then, he has led an ambitious turnaround plan for the ailing insurer, raising capital, reorganising the business and building investors’ trust – despite multiple profit warnings and disappointing results.
But if Hester sells the company at a price that satisfies investors, most insurance-watchers say that his job at the firm will be done.
Eamonn Flanagan, a director at Shore Capital, told City A.M. that the sale would be a “big tick in the box” for a chief executive with an already-impressive CV filled with banking credentials.
“Hester has been very pragmatic, very objective,” Flanagan said, before adding: “It’s time for him to move on.”
Other insurance analysts said they expected Hester to walk away from RSA and return to banking – perhaps even taking up the Barclays chief executive role left vacant by Antony Jenkins’s departure last month.
Whether he stays or goes, Hester stands to cash in on a takeover. He has 1.36m performance-related shares, worth £7.5m, that are likely to be paid out if a deal is struck.