RBS Risks Row Over 'Unacceptable' Stephen Hester £1m Bonus

[BrilloPad]

RBS Risks Row Over 'Unacceptable' Stephen Hester £1m Bonus

"The bailed-out bank attempted to justify the bonus – which is being paid in shares that Hester will be able to gain access to in 2014 – by saying it needed to reward the chief executive for the progress he had made in reducing the size of RBS."

WTF? Surely he should get a bonus if he adds value over and above what he is paid for?

[northernladuk]

But his pay includes the bonus. That is what was agreed when he started. Also note the bonus is to be paid in Shares so performance is somewhat linked. What I want to know is what was the criteria for the size of bonus. Was it a flat sum of x shares, was it a flat value of £900k of shares or did he have KPI's to meet to get the bonus?

If he took the job on and his package was 1.2mil pay bonus of 900k of shares. The only thing he is guilty of is stupid wording in his package that we are all getting lost on.

If it was 1.2 mil and if you meet x y and z you can have 900k of shares then he better start justifying them else he is gonna get eaten alive.

No good asking the general public about this cause they havne't a clue IMO

[The Spartan]

Really he should have done what Antonio Horta-Osorio (LloydsTSB) did and decline the bonus, IMHO he made the right choice seeing as Lloyds is cutting jobs left right and centre and it is 41% by the taxpayer

[TheFaQQer]

But his pay includes the bonus. That is what was agreed when he started. Also note the bonus is to be paid in Shares so performance is somewhat linked. What I want to know is what was the criteria for the size of bonus. Was it a flat sum of x shares, was it a flat value of £900k of shares or did he have KPI's to meet to get the bonus?

There is a certain element of performance, I think. The bonus is 60% of what he could have got.

Also, the shares he got when he joined the company are now worthless.

[TheFaQQer]

Really he should have done what Antonio Horta-Osorio (LloydsTSB) did and decline the bonus, IMHO he made the right choice seeing as Lloyds is cutting jobs left right and centre and it is 41% by the taxpayer

Horta-Osorio was in an even worse position - by taking two months off because of the pressure of the job, it doesn't imply that you are performing too well.

It's all going to pale into insignificance when Diamond gets his bonus from Barclays, though.

[northernladuk]

There is a certain element of performance, I think. The bonus is 60% of what he could have got.

Also, the shares he got when he joined the company are now worthless.

Two points which change the landscape considerably but no one in the press wants to make a song and dance about this and general public are unaware. Silly carry on.

Be interesting to see if Bob Diamond sticks two fingers up to everyone and points out he earned it, he isn't known for bending over just to please people.

[The Spartan]

Barclays didn't require a bailout though unlike RBS and Lloyds

[vetran]

Barclays didn't require a bailout from the taxpayer. though unlike RBS and Lloyds

ftfy

[Notascooby]

Apart from their private middle eastern bailout. But nothings going to change and in 5 years everyone will be back to paying silly money again.

I'm sure any bonus that's reduced or refused now will be paid back 10 fold in pension contributions or future bonuses.

[Mich the Tester]

Apart from their private middle eastern bailout. But nothings going to change and in 5 years everyone will be back to paying silly money again.

I'm sure any bonus that's reduced or refused now will be paid back 10 fold in pension contributions or future bonuses.

Sometimes I think the banks should all up sticks and move their HQ and trading activities to Shanghai. When they lose a load of money or pay themselves bonusses with taxpayers' money and have to explain themselves to some Communist Party official, things could get quite amusing.

Some banks threaten to up sticks and go; I'll tell you what though, if the likes of Goodwin, Fuld and McPillock did what they did in China they'd be in labour camps by now, breaking rocks for the rest of their lives and eating rotten brown rice, mouldy fish heads and boiled dog's brains.