RBS boss turns down £1m pay-out
30.01.2012
RBS chief executive Stephen Hester has decided to turn down his controversial bonus of nearly £1m following intense media and political pressure.
On Friday, the RBS board announced its decision to award Hester, who earns a salary of £1.2m, a 2011 annual performance award of 3.6 million shares, which represented £963,000 based on the closing price on 25 January.
The board said the award “reflects the substantial progress in making RBS safer, rebuilding performance in many businesses and improving customer service and support”. It also said performance was judged against objectives agreed at the start of the year.
“Stephen Hester's pay award reflects progress in the categories agreed with our shareholders as set out in the remuneration report,” said RBS group chairman, Sir Philip Hampton. “His pay is strongly geared to the recovery of RBS, which he was recruited to turn around, having played no part in its collapse.”
Hampton, meanwhile, has given up his right to a shares bonus worth £1.4m, which was to be awarded in April as part of the original package agreed when he took up his position in 2009.
Earlier this month, RBS, which is 83pc state-owned, announced plans to cut 3,500 jobs from its global banking division.