Royal Bank of Scotland are set to unveil a pay package for CEO Stephen Hester that has been accepted by the banks shareholders including UK Financial Investments , the body that manages the tax payers 70% of the business.
An agreement was reached with shareholders on Friday and today’s Financial Times believes the deal to be worth up to £9.6million for the new CEO, made up with a basic salary and performance related bonuses.
Hester will receive a basic salary of £1.2million, a projected £2million in annual non cash bonus payments and almost £6.6million in long term share options according to the FT report.
Hester was appointed last year to restructure the bank following the departure of Fred Goodwin who had led RBS to near collapse and in need of a £20billion bail out by the UK government.
A statement from UK Financial Investments says:
“In their discussions with the RBS board, UK Financial Investments have been very clear that the awards must be based on long-term sustainable performance and that is the case with this proposed package. Our objectives in relation to RBS are to ensure that the value of the business grows so that we can get the maximum possible return for the taxpayer”
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