Tory torch goes out in the City

Time was when Conservatives went straight from politics to business. But William Hague may not be so lucky

While sipping his piña colada with Ffion on his much-deserved holiday this weekend, William Hague is certain to be having a long, hard think about his future. A key question must be whether to suspend or even abandon his political career in order to make some serious money in business.

But is being a Tory, and particularly a failed Tory leader, quite the thing to have on a CV these days when touting for a seat on the board and a big pay packet to go with it?

Conservative leaders have historically gone on to become rather wealthy individuals ­ just look at John Major's post-premier activities, which include a £105,000-a-year roving ambassadorship for the bus maker Mayflower, and a couple of well-paid US adviserships. Or Margaret Thatcher's lucrative Philip Morris consultancy, reported to be worth no less than $1m (around £715,000).

But Mr Hague's two predecessors boasted significant advantages, apart from winning a general election. One is that both Mr Major and Lady Thatcher had worked outside politics before entering the Westminster cauldron.

Mr Major had been in banking for many years while the Iron Lady had worked as an industrial chemist ­ during which time her greatest claim to fame was as the inventor of raspberry ripple ice cream.

"The key question is what an MP who is looking for a business job did before he or she went into politics," says Stephen Bampfylde of headhunter Saxton Bampfylde Hever.

"Just being a famous MP doesn't count for much these days ­ it's the experience outside politics."

He points to Lord (John) Moore, a minister under Lady Thatcher, who worked successfully in financial services before politics and has benefited hugely from that by becoming chairman of Credit Suisse Asset Management, as well as deputy chairman of Rolls-Royce and a director of Blue Circle.

He contrasts Lord Moore's experience with that of Lord (Norman) Lamont, the former Chancellor of the Exchequer, whom he describes as "having no depth of background". Lord Lamont has failed to secure the big-ticket directorships one might expect from such a senior politician.

"William Hague was at McKinseys before he went into politics but it was only for a short time," he adds. So although Mr Hague still wears the trademark McKinsey crisp white shirt ­ also much favoured by Tory frontbencher Archie Norman, his former mentor there ­ his five years as a management consultant before entering the Commons may barely register with the business world.

Mr Hague also lacks the important international experience gained from a Foreign Office job ­ much sought after by the headhunting gang.

His ministerial experience was all domestic ­ Social Security and then the Welsh Office. "We're still a trading nation and he lacks the highly saleable skill acquired at the Foreign Office in dealing with other cultures and countries," says another headhunter.

In contrast, Mr Hague's shadow foreign secretary Francis Maude did time under the last Tory administration as minister of state in the Foreign Office. When he lost his seat in 1992 he was soon snapped up for a well-paid role at the US investment bank Morgan Stanley that was the envy of many of his peers. Although now back in the Commons, he could still prove more marketable than his soon-to-be ex-boss.

And being a Tory ­ once a virtual guarantee to a boardroom chair ­ does not command the cachet it once did. Steve Norris, the former Conservative transport minister, although clearly well briefed on the challenges facing the railways, can hardly have been assisted by his political past when making his public play recently for the chairmanship of Railtrack. He makes a living as a low-key consultant to the public relations firm Citigate Dewe Rogerson.

Ken Clarke, the jazz-loving former Tory Chancellor, who is highly respected by his opponents in the Labour party, is one of the biggest earners of the present bunch of political directors. His portfolio of part-time jobs is reportedly worth a quarter of a million pounds.

Mr Clarke is still an MP but his former Cabinet colleague Sir Malcolm Rifkind failed to regain the Edinburgh Pentlands seat he lost in 1997. A former foreign secretary, Sir Malcolm holds a clutch of directorships and consultancies, including one at PricewaterhouseCoopers. He must rank as the most high-value Tory on the market ­ and the favourite Tory for a high-profile chairmanship.

But perhaps William Hague can still find some comfort, since Ffion works for the well-respected headhunter Leonard Hull International.