RBS expected to pay Stephen Hester £1m+ bonus
Thursday, 19 January 2012 11:02
The chief executive of the Royal Bank of Scotland (RBS) Group could be in line to receive more than £1 million in bonuses for his performance last year, it has emerged.
Although a spokesperson insisted that no decision has been made as to how much Stephen Hester will be paid, the Financial Times claimed that the board is "determined" to push ahead with a bonus.
This is despite RBS's share price falling by 50 per cent in 2011, as well as David Cameron calling for a halt to executives being offered "rewards for failure".
RBS is also 83 per cent owned by the government, so the news is sure to be unwelcome among taxpayers.
The reported bonus for Mr Hester could be between £1.3 and £1.5 million. He received £2.04 million last year for his performance in 2010, with a total of £950 million being paid out by the group to its top employees in 2011.
Earlier this month, chief executive of the Lloyds Banking Group Antonio Horta-Osorio revealed he will not be taking a bonus for his work during 2011.
He said he did not think it would be appropriate given that he recently returned from two months off sick and because of the state of the economy.
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