Shamik Das reports on RBS chief Stephen Hester’s obscene bonus and pay packages - which could see him receive seven million pounds for 2011.
As winter’s icy chill blasts millions of Britons up and down the land, with wages frozen, jobs lost and benefits slashed – with even cancer patients and disabled children not spared by the Cabinet of the compassionless – for at least one individual, there’s reason to cheer.
RBS chief Stephen Hester’s 2011 pay packet could reach £7.38 million. Seven million, three hundred and eighty thousand pounds.
That’s right, those responsible for the crisis are rolling in the dough once again, as if there’d been no recession, while those that had nothing to do with it are paying the price. Fair? Fair???
The Telegraph reports:
In a statement on Thursday night, the bank said Mr Hester would get a bonus of £963,000 as the taxpayer-backed lender bowed to political and public pressure to ensure its chief executive was not handed more than £1m.
However, the bank admitted Mr Hester was still potentially eligible for an award under a long-term incentive plan (LTIP) worth as much as £4.8m.
This means his total pay package for last year including his £1.2m salary and £420,000 pension could reach £7.38m.
If Mr Hester were to receive his maximum LTIP grant it would take the total value of the awards made to him since he took over as chief executive in October 2008 to about £27.5m.
The actual value of these awards is likely to be substantially lower than this due to the collapse in RBS’s share price over the last 12 months.
As foreign office minister Jeremy Browne told Question Time last night:
“There’s a question of honour. Even if there’s a contractual opportunity for him to have a bonus it doesn’t mean he has to accept it… He is effectively a public servant in a bank which is almost completely owned by us the taxpayers.
“He needs to think like a public servant who has a duty to his country, not just his own wealth… No-one’s forcing him to take this money. He could struggle on with £1.2m.”
All in it together?
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• Cable fails to provide a stick or carrot in the fight against obscene pay – Duncan Exley, January 24th 2012
• Three things Cameron should do if he’s serious about high pay – Duncan Exley, January 9th 2012
• How bankers’ bonuses are contributing to the new credit crunch – Cormac Hollingsworth, December 6th 2011
• All in it together, eh Gideon? FTSE fat cats see pay rocket 50 per cent – Shamik Das, October 28th 2011
• Coalition fails “moment of truth” on bankers’ bonuses – Will Straw, February 9th 2011