Latest RBS pay deal causes anger

Grovelawn Financial News 22/06/2009

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£9.6 Million pay deal for chief exec

The Royal Bank of Scotland has caused further consternation for awarding its chief executive, Steven Hester, a pay deal of £9.6 million.

The package will mean he earns a salary of £1.2 million a year, he will have £2 million of annual non-cash bonus repayments and around £6.4 million of long term share options.

Roger Lawson, of the UK Shareholders Association, said; “The Government doesn’t seem to have learnt anything. Such a package incentivises reckless behaviour and encourages risk taking. It is absolutely outrageous that the Government does not use its power to bring the remuneration of bankers in these companies down to a reasonable level”.

The body that controls the Government’s 70 per cent stake in RBS, UK Financial Investments (UKFI) along with the bank’s other major shareholders, gave the go ahead on Friday to the long term plan which the deputy general secretary of Unite said would be met by “absolute disbelief” by the staff at RBS. He went on to say that “Staff and customers are sick of seeing senior bankers earn such huge financial awards, when every week hundreds of hardworking and loyal staff are losing their jobs”.

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