Stephen Hester is the Chief Executive of the Royal Bank Of Scotland and it has just been announced that he is not going to be taking his bonus this year. Reports have stated that this figure would be around £1.5 million if he were to take it.
The government recently stated that bonuses at the bank will not be generous and would be capped at £2000, the government is allowed to make this decision because over 80 percent of the bank is owned by the taxpayer. This limit does not apply to shares in the bank and therefore Mr Hester would have been able to take his bonus if he so chose.
Robert Heston has commented, “A source inside the bank has said that Mr Hester is refusing the bonus because he feels that if he took it the anger from the public would be negative for the bank. Furthermore he wants RBS to be less political and for it to recover enough for it to be privatised.”
Before the announcement that he would not take the bonus, the leader of the Labour Party, Ed Miliband said, “The state still owns a majority share of RBS and whatever is paid out at the bank is paid by the taxpayer and I think it is the responsibility of the Prime Minister to prevent this bonus being paid. Responsibility about government spending is very important and if the Prime Minister wants to be fair then he will prevent this bonus from going through.
Late last year, Mr Hester commented, “When the bonuses are paid out this year we will be paying the least amount possible to our staff.” However the company has still set aside a larger amount for bonuses than it did last year. It is unclear of what the exact figure is yet.