According to the financial institution, the value of RBS shares will now need to reach 57.5p for Stephen Hester, the bankâs CEO, to receive a bonus.
The figure has been raised from the original share price target of 50p while the maximum pay out Mr Hester could receive as part of the three-year payment plan is now Â£4.2 million, Â£600,000 less than originally set out.
RBSâs individual share price must reach 77.5p over the period, up from 75p, for the CEO to receive the maximum bonus available.
Sir Philip Hampton, RBS chairman, told the Daily Telegraph: "This plan is the result of a long, thorough and constructive consultation with shareholders. The board has asked the leadership team to deliver a challenging turnaround plan, and shareholders will benefit substantially if they succeed."
Mr Hester did not accept the Â£1.6 million bonus he was entitled to last year.
Meanwhile, RBS has announced plans to let 2,600 staff members go from its retail and insurance divisions.
By Jim Ottewill