Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

RBS defends chief exec's 'relatively low' pay package to MPs

RBS defends chief exec's 'relatively low' pay package to MPs

Royal Bank of Scotland (RBS) chief executive Stephen Hester defended his ‘relatively low’ pay package to MPs who questions whether his bonus should contribute toward the banks recent Libor fines.

Last week, RBS was hit with fines totalling £390 million over its Libor failings. It was reported that Hester was to receive his bonus despite the fine.

Hester (pictured) receives a basic salary of £1.2 miilion and is set to receive the payment in shares deferred from three years ago.

Hester denied accountability for the Libor-rigging to MPs while giving evidence to the Parliamentary Commission on Banking Standards, and defended his bonus by arguing he had done a lot of work to try to get RBS on the right track since he was joined in November 2008.

He said: ‘I think bonuses should be assessed on all things do well and badly, [it’s] not me that makes judgement.

‘I think that if you look at RBS that we took on four years ago, that we have done huge things to rescue a situation for that company and for society and for different stakeholders.’

He added that it was appropriate to be assessed on things done and not done and said he believed that the ‘nation is off the hook on a lot of bad things, yet not all the way off the hook’.

RBS chairman Philip Hampton jumped in to add Hester was doing one of the most demanding jobs and has been paid ‘relatively low paid’ for a chief executive.

He added that the board had not yet decided on the bonus pool.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter