Standard Life boss to join RBS

Royal Bank of Scotland has appointed outgoing Standard Life chief executive Sir Sandy Crombie as its senior non executive director. 

Sir Sandy will join the part-nationalised bank on June 1, having announced his plans to step down as chief executive of Standard Life earlier this year.

Sir Sandy is widely credited as being the man who turned Standard Life around after being made chief executive in 2004 and shares in the bank were up almost 5% to 41.8p. 

At the time there were serious questions being made over the life insurer's future and whether it would have to close to new business. Its capital base had become badly weakened and relations between the company, its policyholders and the IFAs who sold its products had hit rock bottom. 

Following his appointment Sir Sandy pursued a successful demutualisation and listing on the London Stock Exchange. The company also slashed costs and jobs and mended relations with its stakeholders. 

While Sir Sandy had worked for the organisation for 42 years and was seen as a "Standard Lifer" the company for the first time under Sir Sandy began appointing outsiders to its board and other senior management positions. 

Appointing him to Royal Bank is being seen as a coup for company which had to go cap in hand to the Government after it was brought low by the disastrous acquisition of ABN Amro at the top of the market. 

The appointment was made in consultation with United Kingdom Financial Investments, the Government body set up to oversee the tax payer's investment in several UK banks which were brought low by the credit crunch. 

Like Standard RBS has had to embark upon the difficult job of repairing relations with stakeholders which have been badly damaged by the bank's actions under Sir Fred Goodwin, whose £500,000 a year pension has acted as a running sore after it was approved by the bank's previous board. 

Philip Hampton, chairman, said: "We are fortunate that he will bring to the role of senior independent director his extensive experience of, and engagement with, institutional shareholders, government and regulators."

Scott White, his former communications chief at Standard Life, said: "For me it looks like a very good appointment for RBS. Sandy Crombie turned around Standard Life to such an extent that they are now an industry leader. 

"The UK needs RBS to be the force it once was and to be able to lean on someone like Sir Sandy will be invaluable to RBS and help achieve that.

"He also has the proven ability to relate to a variety stakeholders which will stand the bank in good stead."