Alison Rose will be the first woman to lead one of Britain’s biggest banks after Royal Bank of Scotland named her as its new chief executive.
RBS ended months of speculation when it confirmed Rose, the favourite for the job, will take over from Ross McEwan on 1 November.
She has worked at RBS for 27 years and is deputy chief executive of NatWest Holdings, RBS’s retail and commercial banking division. Rose also runs RBS’s commercial and private banking business, including Coutts.
Rose will receive a fixed base salary of 1.1 million pounds ($1.38 million) a year plus a fixed share allowance set at 100% of her salary. That’s up slightly from McEwan who has a base pay of 1 million pounds a year, plus a 100% fixed share allowance.
RBS said Rose’s pay package “continues to represent a restrained pay position in terms of comparable roles”.
However Rose’s pension will be set at 10% of her salary in line with other RBS employees, compared to McEwan who is receiving 350,000 pounds a year in pension funding.
British banks have been criticized by investors this year for giving their executives more favorable pension arrangements than the rest of their workforce.