Royal Bank of Scotland Group plc (RBS) on Friday confirmed the appointment of Alison Rose as chief executive officer (CEO).
Rose becomes the first woman to be CEO of a major UK bank and RBS becomes the only FTSE 100 firm to have women in its two top executive roles.
Katie Murray was appointed as RBS chief financial officer last year.
Rose’s remuneration package includes a base salary of £1.1 million, a fixed share allowance set at 100% of salary and standard benefit funding of £26,250 per annum.
Her variable pay “will be delivered entirely in shares as long-term incentive awards, with a maximum award of 175% of salary.”
Rose will be required to build up and maintain a minimum shareholding equal to 400% of salary.
Rose, currently CEO of commercial and private banking at RBS, will take up the CEO position on November 1, 2019, and Ross McEwan will formally step down as CEO on October 31, 2019.
The new CEO has worked at RBS for 27 years and, prior to her current role, was head of Europe, Middle East and Africa, Markets & International Banking.
She will also be appointed as executive director and CEO on the boards of NatWest Holdings Limited, The Royal Bank of Scotland plc, National Westminster Bank Plc and Ulster Bank Limited.
RBS is still 62%-owned by the UK taxpayer after its £45 billion bailout during the 2008 global financial crisis.
RBS chairman Howard Davies said: “I am delighted that we have appointed Alison as our new CEO.
“She brings extensive experience and a track record of success from her previous roles at the bank.
“Following a rigorous internal and external process, I am confident that we have appointed the best person for the job.
“I’d like to take this opportunity to thank Ross, on behalf of the board, for his leadership and commitment during his time as CEO and wish him the very best for the future.
“Ross leaves a strong platform for his successor; a bank that has refocussed on its core markets in the UK and Ireland and resolved all its major legacy issues, while returning to profitability and paying dividends.”
Rose said: “It is a huge honour to have been appointed as the new CEO of RBS and I am looking forward to getting started.
“As one of the oldest and most important financial institutions in the UK, we have a key role to play in supporting the economy and championing the potential that exists across the country.
“Under Ross’ leadership, RBS has undergone a significant transformation and, as part of his leadership team, I am extremely proud of all we have accomplished, and I would like to thank him for the support he has given me over the last six years.
“Maintaining the safety and soundness of this bank will continue to underpin everything we do, as will our commitment to our customers and to delivering steady returns for our shareholders.
“This is an exciting time as we enter a new chapter for this bank.
“Our industry is facing a series of challenges; from the ongoing economic and political uncertainty to shifts in the behaviour and expectations of our customers, driven by rapid advances in technology.
“It will be my priority to make sure we are ready to meet these challenges and build the best bank for families, businesses and communities.
“We will be driven with real purpose in our work to help achieve the goals and potential of our customers and be there for them at key moments in their lives.”