The Chief Executive Officer of RBS, Stephen Hester, has had his £7.7 million bonus approved by UK Financial Investments (UKFI), which manage the government’s bank assets.
Despite the approval being announced at the group’s AGM in Edinburgh yesterday, shareholders called the amount “obscene”, after the bank – which remains 83% owned by the taxpayer – recorded a loss of more than £1 billion.
Hester and his team of eight will share a bonus and shares windfall of £28 million for the last financial year.
Ton Powdrill, Head of Communications at advisory group Pirc, said 'the vote on remuneration is a bit of a non-event.' He said that the new long-term incentive plans – which award up to 400% of salary – were “excessive”, arguing that RBS pays above average for both its highest paid director and average executive salary.
Hester has defended his bonus in public, arguing that it is below average for the industry.
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