NatWest must find replacement for Alison Rose before share sale, government says

Dame Alison Rose has abruptly resigned following the Coutts debanking controversy. Photo: REUTERS/Simon Dawson

NatWest is under pressure to appoint a permanent candidate. Dame Alison Rose's successor before her shares go on sale to the general public.

Charles Donald, head of UK Government Investment (UKGI), told a committee of MPs that the taxpayer-owned lender must provide greater clarity over its management and quickly appoint a new chief executive before going public. sale later this year.

The Treasury plans to sell part of its 36 percent stake in NatWest to the public in a Tell Sid-style privatization campaign that could take place as soon as June.

UKGI is the government's internal advisory arm, which has been leading the public sale of shares since the Chancellor announced it during the autumn statement.

“They need to provide clarity to the market regarding their proposals regarding the approval of an interim CEO or the process for appointing a permanent CEO so that the market feels comfortable,”  Mr Donald said.

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Former head of investment bank NatWest Paul Thwaite was appointed interim chief executive of the bank in July last year on an initial 12-month contract. He is yet to be made permanent.

Mr Thwaite was appointed after Dame Alison abruptly resigned following the Coutts debanking controversy, which involved former UKIP leader Nigel Farage.

Anointing a permanent successor is complicated by a looming boardroom shake-up.

Chairman Howard Davis steps down in April and is replaced by Ocado chairman Rick Haythornthwaite.

Mr Haythornthwaite will be responsible for recruiting a permanent leader. He joined the board in January and is currently leading the search for Dame Alison's successor.

ukgi is responsible for managing government investments in private companies. p>

He said Goldman Sachs had been hired as an adviser on the privatization strategy. Barclays and Solid Solutions have also been hired to advise on the retail proposal, while law firm Magic Circle Freshfields is offering legal advice, he added.

“We are in the middle of the exploration phase. We have not come to clear conclusions. This is still a work in progress,” Mr. Wiethen said.

“We have several possibilities where [a stock sale] could happen. At this stage, the schedule has not yet been confirmed.

“The earliest time could be around summer time. We don't have an exact date.»

He signaled that the share sale could «potentially» take place as early as June when asked about the timing by Treasury Select Committee chair Harriette Baldwin MP.

< p>The Government owns about 36% of NatWest since it bailed out its predecessor RBS during the financial crisis.

Over the past 15 years it has gradually reduced its stake from about 84% to its current level.

Officials did not specify how much of the shares they intend to sell to retail shareholders, but the chancellor said the sale would depend on market conditions.

NatWest is due to publish its annual results on February 16.