The Royal Bank of Scotland has named Alison Rose as its new chief executive, making her the first woman to head one of Britain’s biggest high street lenders.
Ms Rose, who was widely tipped to get the role at the publicly-owned bank, will succeed outgoing boss Ross McEwan on 1 November.
Joining the bank as a graduate trainee 27 years ago, she is currently chief executive of its commercial and private banking arm, as well as deputy CEO of Natwest Holdings.
She also led a government-commissioned review into the barriers holding back female entrepreneurs, which reported earlier this year.
Her appointment makes RBS the only company in the FTSE 100 index with women in its top two executive positions, after Katie Murray was promoted to the chief financial officer role in January.
Mr McEwan, who has led the bank since 2013, announced his plans to leave the job in April.
He is due to take over as chief executive of National Australia Bank.
Ms Rose told investors it is an “exciting new chapter” for the bank as it faces “economic and political uncertainty” as well as changing consumer behaviour.
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.”
RBS chairman Howard Davies said: “I am delighted that we have appointed Alison as our new CEO.
“She brings extensive experience and a track record of success from her previous roles at the bank.
“Following a rigorous internal and external process, I am confident that we have appointed the best person for the job.”
Ms Rose will receive a fixed base salary of £1.1m a year, which is up slightly from Mr McEwan who gets £1m.
RBS said her pay package “continues to represent a restrained pay position in terms of comparable roles”.
However, Ms Rose’s pension will be set at 10% of her salary in line with other RBS staff, compared to Mr McEwan who is receiving £350,000 a year in pension funding.
UK banks have been criticised by investors this year for giving executives better pension arrangements than the rest of their employees.
While the government has committed to seeing RBS fully back in private hands by 2024, the political and economic uncertainty around Brexit has delayed further sell-offs of the remaining 62% public holding and cast doubt on the timetable.