The Royal Bank of Scotland has appointed a woman to replace outgoing chief executive Ross McEwan later this year.
Alison Rose will take up the position at the state-owned bank in November and will become the first woman to run one of the UK's big four banks.
Ms Rose joined RBS as a graduate 27 years ago and is currently chief executive of its private banking division and deputy chief executive of NatWest Holdings
Mr McEwan announced his intention to resign from RBS in April after five and a half years as its chief executive and will join National Australia Bank.
In an announcement to the market today (September 20) the bank confirmed Ms Rose would receive a basic salary of £1.1m, compared with her predecessor's £1m, and a fixed share allowance of the same value. She will also receive benefit funding of £26,250 a year and pension funding at a value of 10 per cent of her salary.
RBS said the chief executive's salary reflects the fact Mr McEwan's pay remained unchanged since his appointment in 2013.
Howard Davies, chairman of RBS, said he was confident the bank had appointed the best person for the job after a "rigorous" internal and external hiring process.
He said: "I am delighted that we have appointed Alison as our new chief executive. She brings extensive experience and a track record of success from her previous roles at the bank.
"I'd like to take this opportunity to thank Ross, on behalf of the board, for his leadership and commitment during his time as chief executive and wish him the very best for the future.
"Ross leaves a strong platform for his successor; a bank that has refocussed on its core markets in the UK and Ireland and resolved all its major legacy issues, while returning to profitability and paying dividends."
Ms Rose said the bank had undergone a "significant transformation" under her predecessor's leadership and maintaining the "safety and soundness" of RBS would "continue to underpin" its strategy.
She said: "As one of the oldest and most important financial institutions in the UK, we have a key role to play in supporting the economy and championing the potential that exists across the country.
"This is an exciting time as we enter a new chapter for this bank. Our industry is facing a series of challenges; from the ongoing economic and political uncertainty to shifts in the behaviour and expectations of our customers, driven by rapid advances in technology.
"It will be my priority to make sure we are ready to meet these challenges and build the best bank for families, businesses and communities. We will be driven with real purpose in our work to help achieve the goals and potential of our customers and be there for them at key moments in their lives."
rachel.mortimer@ft.com
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