Backlash over RBS chief's bonus

19 April 2011

A backlash is expected to take place in opposition to the rubber-stamping of a pay packet set to be handed to the chief executive of the Royal Bank of Scotland (RBS).

A £7.7 million bonus for Stephen Hester looks set to be approved, despite the prospect of shareholder rebellion, The Herald reports.

The newspaper noted it is widely predicted that UK Financial Investments - the organisation that manages the 83 per cent stake in the bank that is owned by the taxpayer - will give the green light to the handout.

A spokesman from RBS said: "These awards follow exhaustive consultation with our shareholders and we believe they appropriately balance demonstrating restraint while remaining fully supportive of our leadership through the RBS turnaround plan."

Yesterday (April 18th), the publication said RBS is readying itself for protests from shareholders ahead of its general meeting, after corporate governance advisory group Pensions and Investment Research Consultants condemned the group's executive pay plans.

By Gary Cooper

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