Hester will become a non-executive director at energy giant Centrica from 1 June, joining the group's nominations and audit committees when he does so.
Rick Haythornthwaite, chairman of Centrica said: “I am delighted to welcome Stephen to the board as a non-executive director. His wide-ranging commercial experience, particularly in customer-facing businesses, together with his recognised expertise in transforming performance will be of significant benefit to the Board as we implement our strategy.
"In addition, Stephen brings a broad understanding of financial services and FTSE 100 businesses, together with a deep knowledge of operating within highly regulated businesses.”
Hester pocketed £2.5m for his work at RSA last year, having held onto his role despite the collapse of the Zurich bid.
Full story: Stephen Hester's got another role: City A.M.