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RBS chief Hester rejects £1 million bonus
by Alex Steger on Jan 30, 2012 at 08:04
Royal Bank of Scotland (RBS) chief executive Stephen Hester has agreed to waive his proposed bonus of nearly £1 million after a public outcry and intense political pressure, according to reports.
Hester made the decision last night despite having the support of the RBS board which encouraged him not to bow to his critics and accept the £963,000 payment he was due on top his £1.2 million salary.
It is understood that the announcement by Labour leader Ed Miliband that his party would stage a commons vote over the bonus- one they would have been expected to win with strong support from the Liberal Democrats- that led to Hester’s decision to forgo the bonus.
Hester’s initial plan to accept his bonus had also come under pressure before Sunday’s reversal, after RBS chairman Philip Hampton announced he would not be taking his £1.4 million worth of shares in the bank due as his bonus for the year.
The news of Hester’s decision comes as his restructuring and sale of RBS’s non-core business continues apace with the sale of corporate brokers Hoare Govett to US investment bank Jefferies thought to be close to completion.
The deal is expected to mean around 60 of Hoare Govett’s staff will join Jeffries for a nominal fee, according to the Financial Times.
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3 comments so far. Why not have your say?
Charles Rickards
Jan 30, 2012 at 10:09
Can't help feeling that this man has been bullied by the media into making his decision. If his bonus was contractual, then why shouldn't he get it. There are plenty of people in other organisations that are state related that have taken bonuses, that may not be deserved in the opinion of the media. I hope he tells RBS to get stuffed and find someone else! He has not waived it out of a sense of moral obligation.
report thisJ
Jan 30, 2012 at 10:16
It is bullying clear and simple. During the year he has worked hard to put RBS in a much better position. And do not listen to those who say that he can go away and somebody else woulddo the job because it is not that easy or simple. It is very complicated and a new person who could be talented would take a lot of time to understand the complexity of the job. His bonus is so much lower than other bank execitives, he has earned it and the public should feel much better for what he has achieved.
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Jan 30, 2012 at 18:12
Government bows to media pressure rather than ensuring taxpayer stands a chance of a return on the 'investment' (ie bail-out) in 2008.
If I were Mr Hester, then I'd give David Cameron 2 fingers and walk.
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