When Ross McEwan stepped down as Chief Executive Officer of what was Royal Bank of Scotland Plc in April 2019, it would take the British taxpayer-supported lender close to five months to name his replacement.
(Bloomberg) — When Ross McEwan stepped down as Chief Executive Officer of what was Royal Bank of Scotland Plc in April 2019, it would take the British taxpayer-supported lender close to five months to name his replacement.
That successor, Alison Rose, was appointed following an extensive search that crowned her the first woman to run one of Britain’s biggest lenders. Four years later, and earlier than NatWest Group Plc would’ve expected, the bank is once again on the hunt for a new CEO after Rose resigned Wednesday.
As one of the UK’s largest retail and commercial banking groups, the job is one of the most high profile in the country. Add to that the British government’s 38.6% stake in the company, and you can see why an appointment is not just a business decision, but also in part a political one. Rose’s own fate seemed to be sealed on Tuesday night when both Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt indicated she had lost the government’s confidence.
With the search for her replacement underway, here are some possible candidates for the job.
Internal Candidates
The most obvious successor to Rose is her interim replacement, Paul Thwaite, who was announced as NatWest’s temporary CEO in the early hours of this morning. Appointed for an initial period of 12 months, Thwaite would appear to be the leading internal candidate to succeed Rose.
Until his sudden elevation, Thwaite had been head of NatWest’s commercial and institutional banking division since July 2022, having been appointed CEO of commercial banking in 2019. He previously worked in the company’s transaction banking unit.
NatWest could also turn to its chief financial officer Katie Murray. She joined the bank in 2017 as deputy CFO, before stepping up to succeed Ewen Stevenson when he quit to join HSBC Holdings Plc. An accountant by background, Murray became the first female finance director of a major UK bank when she took the job in January 2019 and has been the face of NatWest with investors and analysts. The CFO role has often been a pathway to the CEO’s office in banking, but this has usually required those wanting to make the move to have gained more operational experience.
Outside Options
There will be no shortage of speculation about external candidates for the NatWest CEO job in the coming months. Sifting among incumbent senior executives, or recently departed bankers, there are several potential successors outside the business.
One resume that could be close to the top of the pile is that of Joe Garner, who until last year ran Nationwide Building Society, the UK’s largest member-owned lender. Garner is well regarded inside and outside the financial services industry and is currently an independent advisor to CEOs across the public and private sector, meaning any appointment would not require a period of gardening leave.
Another possible successor who could be appointed without any period of leave is Stevenson, who was seen as a potential CEO of NatWest until he left for HSBC in 2019. Stevenson departed from HSBC at the start of the year and has yet to reemerge. His years at NatWest mean he knows the bank well, but his lack of experience running a major banking operation could count against him.
Among the ranks of current banking bosses, David Duffy, CEO of Virgin Money UK Plc, and Ian Stuart, head of HSBC UK, the British retail banking arm of HSBC, could well feature in discussions about Rose’s replacement. Other candidates could include Francesca McDonagh, Credit Suisse’s chief operating officer who was, until last year, CEO of Bank of Ireland.
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