“Slick Rick” has extensive experience in the City, but his experience in banking is limited. Photo: Michael Cole/Corbis Sport
At MasterCard's 2019 annual general meeting, then-chairman Rick Haythornthwaite was asked why the company wasn't doing more to stop processing payments for far-right hate groups.
Haythornthwaite acknowledged that This is a complex issue, but stressed that the payments giant must comply with the law when it comes to transactions.
He said: “From a philosophical point of view… it is not our job to find out whether something is legal or illegal .
“If it's legal, then we have to respect that deal. If this is something that swims against the tide of society, society must rise up and change the law, and then we can move on.” He added that MasterCard is «very strict» on privacy.
It's an approach that will serve Haythornthwaite, 66, well in his new role as chairman of NatWest Group after the bank was plunged into crisis by account closure failures Nigel Farage.
The row over his debanking began in June after NatWest-owned Coutts said it would close the former Brexit campaigner's account without much notice. It later emerged that the private bank had closed Farage's accounts because his views were inconsistent with the bank's «values» and were inconsistent with its «position as an inclusive organisation».
Dame Alison Rose, chief executive of NatWest, was forced to resign in July after admitting to being the source of an inaccurate BBC story that Farage's Coutts account had been closed for commercial reasons.
NatWest boss Dame Alison Rose was forced to resign after admitting she was the source of an inaccurate BBC article about Nigel Farage. Photo: Nicholas T. Ansell/PA
Last week Haythornthwaite, a City veteran nicknamed «Slick Rick», was chosen to lead the 40% taxpayer-owned bank out of the current storm and into calmer waters. He will join the board in early January and then succeed Sir Howard Davis as chairman in April next year.
The task will not be easy. In his first few months on the job, the Oxford-educated Brit will oversee the appointment of a permanent successor to Ms Alison as chief executive. He will also need to quickly mend the relationship between the bank and the government — its biggest shareholder — after ministers were furious over Farage's debanking scandal.
Gary Greenwood, banking analyst at Shore Capital, says: » [Haythornthwaite's] biggest challenge is finding the right new CEO.»
«After that, it's about trying to retain all the stakeholders. happy, which is no easy task when NatWest is under the spotlight even more than most banks as it is still around 40% government owned.»
Nigel Farage's bank account history
His appointment has been approved by both the Treasury and the city's watchdog, with the former confident that Haythornthwaite will be able to keep the ship steady in Nat West.
Haythornthwaite, who studied at King's College, Oxford and MIT, is a major spent part of his career at BP, rising through the ranks to manage Magnus, the largest oil field in the North Sea.
He ran a range of businesses, from cement to engineering, before heading the boards of some of Britain's best-known companies, including British gas company Centrica, Ocado and Network Rail.
A government source says: «Rick has over twenty years' experience leading some of the world's largest commercial companies and is a widely respected candidate to become chairman of one of the UK's largest banks.»
Although he has a wealth of experience, his tenure has not always been easy. Union bosses accused him of running a Network Rail gravy train after he approved a £2.4m bonus for directors in 2010.
This came despite then Transport Secretary Philip Hammond urged Haythornthwaite to show «restraint» over bonuses. Hammond wrote to the then chairman of Network Rail, urging him to «show sensitivity to the wider economic climate».
Haythornthwaite has chaired the boards of some of Britain's best-known companies, including Centrica, Ocado and Network Rail. Credit: DANIEL JONES
Haythornthwaite also faced a backlash over his pay at Centrica and was criticized by a prominent shareholder advisory group for holding too many board positions at once.
Some in the City were surprised that NatWest had not chosen someone with banking experience. Although Haythornthwaite is a consultant at investment bank Moelis, he has never worked for a major lender.
Greenwood says: “I'm a little surprised they didn't go with someone with more banking experience.< /p>
«However, it is difficult to find candidates who are not tainted by the past, so perhaps having an experienced non-banker has its advantages.»
As well as recovering from the debanking scandal, the City veteran will also have to contend with other challenges: reduced use of cash as NatWest has come under fire in recent months after introducing new restrictions on cash deposits and withdrawals; closing of branches; and helping to manage the government's sale of its remaining stake in the bank.
Under current plans, the Treasury intends to sell its 38.8% stake in NatWest by the end of 2026.
In an interview with the consultancy giant McKinsey in 2020, the new chairman of NatWest outlined what boards want from their leaders during a crisis.
Haythornthwaite said: “Boards need CEOs who can handle multiple truths, who can be expansive in their thinking.” , and who will be able to live comfortably in the future and take company with them on trips.”
He added that “the boards still want to sleep… we like to sleep well at night.” After a tumultuous few months, such sentiments will be warmly welcomed by NatWest directors.
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