Stephen Hester appointed RSA Group Chief Executive
RSA Insurance Group Plc
IMMEDIATE 4 February 2014
Stephen Hester appointed RSA Group Chief Executive
RSA Insurance Group plc (RSA) today announces the appointment of Stephen
Hester as Group Chief Executive and a Director of the Company with
Martin Scicluna, Chairman of RSA, who has been acting in an executive
capacity pending the appointment of a Chief Executive, will revert to
Stephen was most recently Chief Executive Officer at Royal Bank of
Scotland (RBS) where he successfully led the UK’s largest ever corporate
restructuring and recovery programme.
With over 30 years’ experience in financial services and FTSE 100
businesses, Stephen has also served as Chief Executive of The British
Land Company plc, Chief Operating Officer and Finance Director of Abbey
National plc and held a number of senior roles at Credit Suisse First
Boston in the UK and US.
Martin Scicluna, Chairman of RSA, said:
“I am extremely pleased that Stephen is joining RSA as our new Chief
Executive. He is an exceptional business leader with extensive global
financial services expertise. He has an outstanding track record of
transforming the performance of businesses, bringing new energy and
focus and implementing a challenging agenda to ensure significant value
is delivered for customers and shareholders.
“His appointment follows a comprehensive global search process which
produced a shortlist of excellent candidates. He has the unanimous
support of all of the Directors and we are confident that, with the
support of the Board and the Executive Team, he will work quickly to
take the Group forward.”
Stephen Hester, said:
“I am delighted to be asked to lead RSA, an organisation with a 300-year
heritage. RSA has grown into a global insurer with market leading
businesses, talented and engaged staff and long-standing partners and
"However, the challenges of recent months have demonstrated that we have
not lived up to our stakeholders' expectations and performed to our true
potential. We have an obligation to deliver shareholder value and
excellent products and services that provide everyday protection for our
“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.”
Notes to editors:
In accordance with paragraph LR 9.6.13R of the listing rules, RSA
confirms there is no information to be disclosed in terms of LR
9.6.13R (2) to LR 9.6.13R (6) inclusive in respect of Stephen Hester.
Information in respect of LR 9.6.13R (1) is set out below.
At the date of this announcement, Stephen Hester has no beneficial
interests in ordinary shares of RSA.
Stephen Hester’s appointment has been approved by the Prudential
RSA remains on track to announce the outcome of its business review at
its Full Year results on 27th February.
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A photograph of Stephen Hester is available at: news.rsagroup.com.
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Key compensation arrangements
Stephen has been appointed on an annual salary of £950,000. No sign-on
payments or other similar exceptional, compensatory remuneration will be
His annual incentive opportunity will be set in the same ranges as
existing Executive Director policy, linked to the achievement of the
bonus plan's targets. Fifty per cent of any bonus award must be deferred
into RSA shares for three years.
Subject to the Group’s remuneration arrangements receiving shareholder
approval at the 2014 AGM, he will be granted an opportunity over shares
in the long-term incentive plan (LTIP). His first grant in 2014 will
have a face value equivalent to 300% of salary, and successive annual
grants will be made no higher than 230% of salary. All LTIP shares are
based on the achievement of stretching performance conditions measured
over three financial years; there is no assurance that they will vest
either in whole or part. When vested, all shares must be held for a
further two years.
Biographical information on Stephen Hester
Stephen was appointed Chief Executive Officer of The Royal Bank of
Scotland Group plc in October 2008 to lead the largest ever corporate
restructuring and recovery programme. He resigned as a director with
effect from 30 September 2013.
Prior to RBS, Stephen was Chief Executive of British Land plc from
November 2004 to October 2008.
He was previously Chief Operating Officer of Abbey National plc, having
joined in May 2002 as Finance Director.
For the first 19 years of his career, between 1982 to 2001, Stephen held
a number of senior roles at Credit Suisse First Boston in London and New
York. These included Chief Financial Officer, Global Head of the Fixed
Income Division and co-Head European Investment Banking.
He is a trustee of The Royal Botanic Gardens, Kew Foundation.
He was born in 1960 and holds a first class degree in Politics,
Philosophy and Economics from Oxford University.
With a heritage of over 300 years, RSA is one of the world’s leading
multinational quoted insurance groups. RSA has major operations in the
UK, Scandinavia, Canada, Ireland, Latin America, Asia and the Middle
East and Central and Eastern Europe and has the capability to write
business in around 140 countries. Focusing on general insurance, RSA has
around 23,000 employees and, in 2012, its net written premiums were £8.4
Important disclaimer This press release and the associated
conference call may contain ‘forward-looking statements’ with respect to
certain of the Group’s plans and its current goals and expectations
relating to its future financial condition, performance, results,
strategic initiatives and objectives. Generally, words such as “may”,
“could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”,
“outlook”, “believe”, “plan”, “seek”, “continue” or similar expressions
identify forward-looking statements. These forward-looking statements
are not guarantees of future performance. By their nature, all
forward-looking statements are inherently predictive and speculative and
involve risk and uncertainty because they relate to future events and
circumstances which are beyond the Group’s control, including amongst
other things, UK domestic and global economic business conditions,
market-related risks such as fluctuations in interest rates and exchange
rates, the policies and actions of regulatory authorities, the impact of
competition, inflation, deflation, the timing impact and other
uncertainties of future acquisitions or combinations within relevant
industries, as well as the impact of tax and other legislation or
regulations in the jurisdictions in which the Group and its affiliates
operate. As a result, the Group’s actual future financial condition,
performance and results may differ materially from the plans, goals and
expectations set forth in the Group’s forward-looking statements.
Forward-looking statements in this press release are current only as of
the date on which such statements are made. The Group undertakes no
obligation to update any forward-looking statements, save in respect of
any requirement under applicable law or regulation. Nothing in this
press release shall be construed as a profit forecast.