Stephen Hester
Sir Stephen Hester | |
|---|---|
| Born | December 14, 1960 Ithaca, New York, U.S. |
| Occupation(s) | Business executive, banker |
| Years active | 1982–present |
| Known for | CEO of Royal Bank of Scotland, RSA Insurance Group, British Land; Chairman of Nordea and easyJet |
Sir Stephen Alan Michael Hester (born 14 December 1960) is a prominent British business leader and banker, serving as chairman of Nordea Abp since 2022 and easyJet since 2021. He previously held chief executive positions at RSA Insurance Group and British Land.
Early life
Hester is the firstborn son of Ronald, a chemistry professor at the University of York, and Dr Bridget Hester, who worked as a psychotherapist. Although born in Ithaca, New York, he spent most of his childhood in Crayke, North Yorkshire. His education includes attendance at Easingwold School and earning first-class honours in Philosophy, Politics and Economics from Lady Margaret Hall, Oxford, where he also chaired the Tory Reform Group.
Career
Over a span of 17 years, Hester has been CEO of three distinct FTSE 100 companies. His professional journey began in 1982 at investment bank Credit Suisse First Boston, where he rose to managing director by the age of 27. He later became co-head of European M&A and investment banking, joining the Executive Board in 1996. Subsequently, he served as CFO and Head of Support Division until 2000, then took on the role of Global Head of Fixed Income until 2001.
In May 2002, Hester was appointed Finance Director at Abbey National during a period marked by significant financial difficulties within its wholesale and life insurance sectors. He assumed additional responsibilities as COO for these divisions throughout a restructuring process that culminated in the bank’s profitable acquisition by Santander in 2004.
Hester succeeded founder Sir John Ritblat as CEO of British Land in November 2004.
In March 2008, Chancellor Alistair Darling appointed him non-executive deputy chairman of Northern Rock, a position he resigned from in September to join the board of the Royal Bank of Scotland.
Royal Bank of Scotland
In October 2008, amid the global financial crisis, RBS—then the world’s largest bank by asset size—was rescued through a bailout funded by UK taxpayers. Hester was named CEO to replace Fred Goodwin and tasked with steering the bank through its recovery phase.
During his five-year tenure, Hester orchestrated a major restructuring effort that involved shrinking the bank’s assets by roughly £720 billion and achieving cost reductions near £4.2 billion. These measures were pivotal in stabilizing RBS’s finances; under his leadership, the share price rebounded from a low point of 90p to approximately 330p upon his exit.
His annual remuneration at RBS was £1.1 million. In response to public scrutiny and political pressures related to ongoing difficulties within RBS, Hester declined bonuses totaling close to £2 million in 2012.
In June 2013, it was announced that Hester would resign as CEO at the end of that year after five years managing the bank’s turnaround.
RSA Insurance
On 4 February 2014, Hester assumed the role of CEO at RSA Insurance Group, a FTSE100 insurer encountering financial challenges. He spearheaded a comprehensive restructuring effort that involved a £750 million rights issue, leadership adjustments, and expense reductions. These initiatives led to marked improvements in profitability, dividend payouts, and the company's stock market performance. In June 2021, RSA agreed to a £7.2 billion all-cash acquisition offer from Canada’s Intact and Denmark’s Tryg, reflecting an industry-leading 52% premium.
Other appointments
In June 2016, Hester was appointed to the board of Centrica, the FTSE100 energy corporation, serving as Senior Independent Director until June 2022.
2021 onwards
Hester joined the board of easyJet, Europe’s foremost airline, on 1 September 2021 and was elevated to Chairman on 1 December 2021. Additionally, in November 2021, he took on the position of Lead Independent Director at Kyndryl, a New York-based firm that emerged as IBM’s largest global IT infrastructure services provider following its spin-off.
In April 2022, Hester became Vice Chairman of the Board at Nordea Bank abp and was promoted to Chairman on 1 October 2022. Nordea stands as the largest banking institution in the Nordic region and ranks fifth in Europe by market value.
Personal life
Hester married Barbara Abt, originally from Canada, in 1991; the couple has two children. Their relationship began during their tenure at Credit Suisse but ended in divorce in 2010.
In September 2012, he wed Suzy Neubert, a former banker and wealth management professional at J.O. Hambro. Together, they have four children.
In 1992, Hester acquired the 400-acre Broughton Grange estate located in Oxfordshire, dedicating efforts to garden and arboretum enhancements. This includes collaborations with landscape architect Tom Stuart-Smith and pioneering UK plantings of the Australian Wollemi pine. He also contributed nine years as a trustee for the Foundation and Friends of the Royal Botanic Gardens, Kew.
His personal interests encompass tennis, running, shooting, and skiing; he owns a chalet in Verbier, Switzerland. Earlier in life, he engaged in horse riding activities connected to his first wife’s involvement as a master of fox hounds.
Hester has made donations to the Conservative Party. In the 2024 New Year Honours, he was knighted as a Knight Bachelor in recognition of his contributions to Business and the Economy.