McEwan to get lower salary at RBS than Hester

RBS: Expected to appoint Ross McEwan as chief executive. Picture: PA
RBS: Expected to appoint Ross McEwan as chief executive. Picture: PA
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ROYAL Bank of Scotland is today expected to appoint high-street banking boss Ross McEwan as chief executive on a lower salary package than Stephen Hester.

The New Zealander, who has been hot favourite for the job since BlackRock’s Mark McCombe turned it down last week, is likely to be paid about £1 million.

Hester received a basic salary of £1.2m.

The bank was in talks with the Prudential Regulation Authority and McEwan yesterday, hammering out final details of his appointment.

It was thought an announcement would be made last night but it is now likely to be confirmed in a statement alongside the bank’s half-year results statement early today.

Finance director Bruce Van Saun, who is due to return to the US to run the bank’s Citizens subsidiary, is believed to be the next choice if an agreement is not reached with the head of RBS retail.

McEwan was headhunted from Commonwealth Bank of Australia for his current role only last September and has set about reorganising the branch-based division to re-engage with the customer.

One concern is his lack of investment banking experience, though this is thought likely to suit the government which wants Hester’s successor to refocus RBS around high-street banking.

His tasks will include the possible splintering of RBS into a “good” and “bad” bank.

He will also take on the important task of moving RBS back into the private sector.