RBS pay bonanza set for all-clear

The controversial £7.7m pay package awarded to Royal Bank of Scotland’s boss is expected to be given the all-clear by the Government today despite widespread backlash over the deal.

By The Newsroom

Published 19th Apr 2011, 07:00 BST

UK Financial Investments, which manages the Government’s bank assets, is reportedly planning to give its backing when shareholders cast their vote on RBS pay plans at the group’s annual meeting in Edinburgh.

The move could see RBS, which is 83 per cent owned by the taxpayer, attract further public outrage after details of chief executive Stephen Hester’s pay emerged last month.

It was revealed that he was awarded an additional £4.5m potential shares windfall on top of his £2m annual bonus and £1.2m salary for 2010, which was not originally revealed under the Project Merlin agreement with the Government to rein in pay.

RBS also admitted it paid 323 code staff – those deemed to be in risk-sensitive roles – £375m last year.

Annual figures showed the bank remained in the red last year, with losses of £1.1bn in 2010.

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