Hester pay revolt: Stephen Hester suffered a setback when 16 % of RSA’s shareholders voted against the Chief Executive’s pay at the company’s annual meeting in central London (writes Kathryn Hopkins). The package could be worth as much as £5.7 million, as long as Mr Hester meets all his targets.
8 May '15
RSA: clouding over: When Stephen Hester was appointed Chief Executive of insurer RSA in February last year the shares rose 8% in a week. But since then the clouds of low interest rates have obscured the sunny start and more than reversed that gain. Mr Hester has made the right moves to improve what was a troubled business. A £775 million rights issue last year fixed the balance sheet. The capital position is comfortable (but not excessively so). But the wind is not following. Low interest rates hurt in many ways. First they cut the income that RSA generates from its investment book. It expects £380 million of such income this year, against £439 million last year. Low rates also push yield-hungry investors to seek new homes for their capital, and insurance is one such home. The resulting capital influx pushes down premiums. So RSA did well to increase premiums slightly in the first quarter, reported on Thursday (although exchange rates pushed reported premiums down 6%). But add all the pressure together, and analysts expect RSA to report EPS of 32p for 2016. When Mr Hester was appointed, the estimate for 2016 was 56p. Thursday was a decent day for RSA. The shares edged ahead on the back of the first quarter numbers, while the jump in European government bond yields could also be helpful. But these are gaps in the clouds, rather than signs that the sun is returning.
3 May '15
Hester pay spat heats up: RSA is braced for an investor revolt this week over a long-term bonus package for Chief Executive Stephen Hester
26 Apr '15
hester is worth his money
I think Mr h is worth 2.1M bonus.. hang on I have been drinking heavily all day. Anyway what was saying... good luck Mr h
26 Apr '15
Hester faces pay revolt: RSA Boss Stephen Hester faces becoming embroiled in a fresh pay row, with the insurer’s largest investor set to protest over his £2.1 million salary and bonus package
1 Apr '15
Who gives a flying
about the pension scheme deficit? One thing's certain and that's Hestor is not a beneficiary so it's in his interest to sort out the deficit according to the needs of the company. Also people are forgetting that a deficit is at a fixed point in time and can completely change (for worse or better) almost overnight. It's the discount rate on long term bonds that are the issue, not the RSA PS. GI is an easy game as long as the risk management is sorted, that's what investors need to check. Oh, and yes, I am invested here (average at 440 ish)
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