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Chief Executive At RBS To Get Reduced Bonus As Political Pressure Bites
Tom Burroughes
27 January 2012
Royal Bank of Scotland is to cut its chief
executive's 2011 bonus to £963,000 (around $1.5 million) in the wake of public
and political pressure to curb pay at the partly state-owned bank, parent of
Coutts, the private bank. RBS has allocated Stephen Hester a 2011 annual performance
award of £3.6 million shares, worth £963,000 based on its closing share price
of 26.75 pence when it made its decision on the bonus payment earlier this
week, media reports said. The size of the bonus is down from Hester's share-based
bonus of £2 million for 2010 and will also be deferred; this means Hester will
not be able to cash them in full until late 2014.