George Mathewson
Encyclopedia
Sir George Mathewson is a Scottish
businessman. His father (also George) was an electrical engineer. He was educated at Perth Academy
and the University of St Andrews
' Queen's College
in Dundee
, from where he graduated in 1961 with a degree in mathematics and applied physics. He is best known for transforming the Scottish bank The Royal Bank of Scotland from a struggling regional player into a quasi global bank with parallels to Citigroup
or HSBC
. He was described by the Sunday Herald
, as "banking's answer to Bruce Springsteen
."
He is the convener of Scotland's Council of Economic Advisers
.
, New York (1967–72). He was attracted back to Scotland by the opening up of the North Sea to oil exploration and joined venture capital group 3i
, then called Industrial and Commercial Finance Corporation (1972–81). He was chief executive of the state-funded economic regeneration organisation the Scottish Development Agency (now called Scottish Enterprise
) during the Margaret Thatcher
years (1981–87). In this role Mathewson led initiatives including the creation of Silicon Glen
- using state subsidies to help attract high-tech businesses to Scotland's central lowlands.
, in 1987 as director of strategic planning and development. The following year the Scottish bank showed signs of international ambition by acquiring the US-based Citizens Financial Group
and by entering a long-term "strategic alliance" with the Spanish bank Banco Santander. While the first deal became the springboard for RBS gaining a significant US presence, the deal with Santander was dissolved in 2004 after the Spanish bank offended its UK partner by taking over its UK rival Abbey National
.
When Mathewson became RBS's chief executive in 1992 the bank had been severely weakened by bad debts arising from poor lending decisions, which had been exacerbated by the economic slowdown of the early 1990s. To get the bank onto an even keel, Mathewson led 'Project Columbus', a restructuring of RBS's UK operations which included a tightening of credit controls. This earned him a reputation for ruthlessness but gave the bank a solid platform for growth. In 1998 RBS became the first ever Scottish company to make profits of more than £1 billion. He was knighted for services to Scottish business the following year.
The defining moment of Mathewson's career came with the £20 billion takeover of the much larger UK bank National Westminster Bank
in February 2000. The acquisition was a sweet triumph for Mathewson, who mustered support from investment banks Merrill Lynch
and Goldman Sachs
to defeat RBS's Scottish arch-rival the Bank of Scotland
, which had opened the bidding for NatWest. Some argue that Mathewson would not have dared to make a hostile bid for NatWest if Sir Peter Burt, chief executive of the Bank of Scotland, had not gone first.
Soon after the NatWest acquisition, Mathewson stepped down as RBS's CEO, handing the reins to his deputy Fred Goodwin
, who assumed responsibility for integrating NatWest. Mathewson became executive deputy chairman of the enlarged RBS Group. He became chairman in May 2001 following the retirement of former Tory
politician Lord George Younger.
While Mathewson was chairman, RBS bought Cleveland, Ohio-based Charter One, which was bolted onto the bank's Citizens arm, and a five per cent stake in Beijing-based Bank of China
. Mathewson stepped down as chairman in April 2006, and was succeeded by former AstraZeneca
chief executive Sir Tom McKillop
, who is three years his junior. He became something of an iconic figure in Scottish business circles as a result of the transformation of RBS.
and non-executive chairman of hedge fund Tosca, which was active in RBS's disastrous takeover in 2007 of Dutch bank ABN Amro
. He is also a non-executive director of investment company the Scottish Investment Trust, wealth managers Cheviot Asset Management and Perth-based bus and train company Stagecoach Group
. He is on the board of directors of the Institute of International Finance and president of the International Monetary Conference.
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
businessman. His father (also George) was an electrical engineer. He was educated at Perth Academy
Perth Academy
Perth Academy is a state comprehensive secondary school in the Scottish town of Perth. It was founded in 1760. The standard week at Perth Academy for students is Monday to Friday from 8.55am to 3.30pm, although this may differ for students taking part in any extra curricula activities. The...
and the University of St Andrews
University of St Andrews
The University of St Andrews, informally referred to as "St Andrews", is the oldest university in Scotland and the third oldest in the English-speaking world after Oxford and Cambridge. The university is situated in the town of St Andrews, Fife, on the east coast of Scotland. It was founded between...
' Queen's College
University of Dundee
The University of Dundee is a university based in the city and Royal burgh of Dundee on eastern coast of the central Lowlands of Scotland and with a small number of institutions elsewhere....
in Dundee
Dundee
Dundee is the fourth-largest city in Scotland and the 39th most populous settlement in the United Kingdom. It lies within the eastern central Lowlands on the north bank of the Firth of Tay, which feeds into the North Sea...
, from where he graduated in 1961 with a degree in mathematics and applied physics. He is best known for transforming the Scottish bank The Royal Bank of Scotland from a struggling regional player into a quasi global bank with parallels to Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
or HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
. He was described by the Sunday Herald
Sunday Herald
The Sunday Herald is a Scottish Sunday newspaper launched on 7 February 1999. The ABC audited circulation in April 2011 showed sales of 31,123.From the start it has combined a centre-left stance with support for Scottish devolution...
, as "banking's answer to Bruce Springsteen
Bruce Springsteen
Bruce Frederick Joseph Springsteen , nicknamed "The Boss," is an American singer-songwriter who records and tours with the E Street Band...
."
He is the convener of Scotland's Council of Economic Advisers
Council of Economic Advisers (Scotland)
The Council of Economic Advisers is a group of economists and captains of industry who advise the Scottish Government. It was established in 2007, meeting for the first time on 21 September....
.
Early career
Mathewson started his career as a lecturer at St Andrews University where he did a PhD, before moving to United States to work for Bell Aerospace as an engineer in BuffaloBuffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
, New York (1967–72). He was attracted back to Scotland by the opening up of the North Sea to oil exploration and joined venture capital group 3i
3i
3i Group plc is a multinational private equity and venture capital company headquartered in London, United Kingdom. It has offices in 13 countries across Asia, Europe and the Americas and had total assets under management of £12.7 billion as at 31 March 2011...
, then called Industrial and Commercial Finance Corporation (1972–81). He was chief executive of the state-funded economic regeneration organisation the Scottish Development Agency (now called Scottish Enterprise
Scottish Enterprise
Scottish Enterprise is a sponsored non-departmental public body of the Scottish Government which encourages economic development, enterprise, innovation and investment in business...
) during the Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
years (1981–87). In this role Mathewson led initiatives including the creation of Silicon Glen
Silicon Glen
Silicon Glen is a nickname for the high tech sector of Scotland. It is applied to the Central Belt triangle between Dundee, Inverclyde and Edinburgh, which includes Fife, Glasgow and Stirling; although electronics facilities outside this area may also be included in the term. The term has been in...
- using state subsidies to help attract high-tech businesses to Scotland's central lowlands.
Royal Bank of Scotland (1987 - 2000)
Mathewson joined the Royal Bank of Scotland, which is headquartered in the Scottish capital city of EdinburghEdinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, in 1987 as director of strategic planning and development. The following year the Scottish bank showed signs of international ambition by acquiring the US-based Citizens Financial Group
Citizens Financial Group
Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island, which operates in the states of Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont. Citizens is a wholly owned...
and by entering a long-term "strategic alliance" with the Spanish bank Banco Santander. While the first deal became the springboard for RBS gaining a significant US presence, the deal with Santander was dissolved in 2004 after the Spanish bank offended its UK partner by taking over its UK rival Abbey National
Abbey National
Abbey National plc was a UK-based bank and former building society, which latterly traded under the Abbey brand name. It became a wholly owned subsidiary of Grupo Santander of Spain in 2004, and was rebranded as Santander in January 2010, forming Santander UK along with the savings business of the...
.
When Mathewson became RBS's chief executive in 1992 the bank had been severely weakened by bad debts arising from poor lending decisions, which had been exacerbated by the economic slowdown of the early 1990s. To get the bank onto an even keel, Mathewson led 'Project Columbus', a restructuring of RBS's UK operations which included a tightening of credit controls. This earned him a reputation for ruthlessness but gave the bank a solid platform for growth. In 1998 RBS became the first ever Scottish company to make profits of more than £1 billion. He was knighted for services to Scottish business the following year.
The defining moment of Mathewson's career came with the £20 billion takeover of the much larger UK bank National Westminster Bank
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...
in February 2000. The acquisition was a sweet triumph for Mathewson, who mustered support from investment banks Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
and Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
to defeat RBS's Scottish arch-rival the Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
, which had opened the bidding for NatWest. Some argue that Mathewson would not have dared to make a hostile bid for NatWest if Sir Peter Burt, chief executive of the Bank of Scotland, had not gone first.
Soon after the NatWest acquisition, Mathewson stepped down as RBS's CEO, handing the reins to his deputy Fred Goodwin
Fred Goodwin
Sir Frederick Anderson Goodwin CA, FCIBS is a Scottish chartered accountant and former banker who was chief executive of the Royal Bank of Scotland Group between 2001 and 2009....
, who assumed responsibility for integrating NatWest. Mathewson became executive deputy chairman of the enlarged RBS Group. He became chairman in May 2001 following the retirement of former Tory
Tory
Toryism is a traditionalist and conservative political philosophy which grew out of the Cavalier faction in the Wars of the Three Kingdoms. It is a prominent ideology in the politics of the United Kingdom, but also features in parts of The Commonwealth, particularly in Canada...
politician Lord George Younger.
While Mathewson was chairman, RBS bought Cleveland, Ohio-based Charter One, which was bolted onto the bank's Citizens arm, and a five per cent stake in Beijing-based Bank of China
Bank of China
Bank of China Limited is one of the big four state-owned commercial banks of the People's Republic of China. It was founded in 1912 by the Government of the Republic of China, to replace the Government Bank of Imperial China. It is the oldest bank in China...
. Mathewson stepped down as chairman in April 2006, and was succeeded by former AstraZeneca
AstraZeneca
AstraZeneca plc is a global pharmaceutical and biologics company headquartered in London, United Kingdom. It is the world's seventh-largest pharmaceutical company measured by revenues and has operations in over 100 countries...
chief executive Sir Tom McKillop
Tom McKillop
Sir Thomas Fulton Wilson McKillop, born 19 March 1943, is a chemist, pharmaceutical company CEO and former chairman of RBS Group.McKillop was born in Dreghorn, a small village near the town of Irvine in Ayrshire, Scotland and educated at Irvine Royal Academy and then Glasgow University, where he...
, who is three years his junior. He became something of an iconic figure in Scottish business circles as a result of the transformation of RBS.
Life after RBS
After retiring from RBS, Mathewson became chairman of the campaign board of the Royal Botanic Garden EdinburghRoyal Botanic Garden Edinburgh
The Royal Botanic Garden Edinburgh is a scientific centre for the study of plants, their diversity and conservation, as well as a popular tourist attraction. Originally founded in 1670 as a physic garden to grow medicinal plants, today it occupies four sites across Scotland — Edinburgh,...
and non-executive chairman of hedge fund Tosca, which was active in RBS's disastrous takeover in 2007 of Dutch bank ABN Amro
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
. He is also a non-executive director of investment company the Scottish Investment Trust, wealth managers Cheviot Asset Management and Perth-based bus and train company Stagecoach Group
Stagecoach Group
Stagecoach Group plc is an international transport group operating buses, trains, trams, express coaches and ferries. The group was founded in 1980 by the current chairman, Sir Brian Souter, his sister, Ann Gloag, and her former husband Robin...
. He is on the board of directors of the Institute of International Finance and president of the International Monetary Conference.