Friday, January 27, 2012

£1m reward for failure: He's missed lending targets, the share price has plunged and he's axeing 3,500 jobs. But still RBS chief pockets huge bonus

The boss of state-owned Royal Bank of Scotland was handed an annual bonus of nearly £1million yesterday.

To widespread fury, the board of directors awarded Stephen Hester more than many ordinary workers earn in a lifetime.

The bank insists it has shown restraint because its chief executive was ‘entitled’ to £1.5million.

But David Ruffley, a senior Tory on the Treasury select committee, said: ‘Mr Hester is already paid a £1.2million basic salary, which seems to me generous given that the share price has fallen and RBS has failed to meet its lending targets set by the Chancellor.

‘It is therefore totally unacceptable that there should be a bonus of just under £1million for what in the rest of the private sector would be seen as sub-standard performance.’

John Mann, a Labour MP on the same committee, said: ‘It is a reward for failure. Giving him a bonus that just creeps under £1million is like sticking two fingers up at the taxpayer. The Government should have put their foot down and insisted that he gets nothing.’ Read More