As chief executive for a company that is 70 percent owned by the government, a 9.6 million pounds pay package is quite a tidy sum.
It is a package that makes Royal Bank of Scotland chief executive Stephen Hester almost as well as paid as the Real Madrid-bound Cristiano Ronaldo.
True the package has caveats - it is dependent on targets including shareholder return and absolute share performance - and is line with other British banking chiefs.
But in these more frugal post-global downturn times does that make it right? In trying to get itself shipshape, RBS has slashed over 15,000 jobs as it received its £20 billion pounds government bailout.
As details of the pay package were revealed it also emerged that RBS, which has been pilloried over the pension awarded to Hester’s predecessor Fred Goodwin, will be spending £300,000 on corporate entertainment at Wimbledon over the next fortnight. Doh!
Given the taxpayer-funded bailout of RBS is Hester worth £9.6m?
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2 comments so far
NO EMPLOYEE is worth £9.6m.
The only persons who might legitimately earn such amounts are entrepeneurs who are risking their own money and therefore deserve huge rewards.
It seems that RBS is still being run as a jolly old boys club with the main objective of its board members being to fill their boots with other people’s money.
A good clearout is long overdue.
- Posted by PeterI’m 10 years with RBS (customer). Currently unemployed, struggling a bit, trying to pay my bills having set Direct Debits and Standing Orders from my account. Due to some problems in the past (Experian Credit Score isn’t the top one) I am still stuck with the very basic Key Account (it’s not a current account). Therefore I am not allowed to have a Debit Card, just a cash card to withdraw my fund from Cash Machine plus no overdraft facility. It happens sometimes that I am short £0.50 (50 pence) in my account on the day when my DD go through. I do get money the next day though. It happened recently that I had 3 DD taking place on the same day and I was just 50p short for them to go through. Eventually they remained unpaid and the bank charged me 3 x £38 = £114 for unpaid DD. (The total value of 3 unpaid DD’s - twenty pounds). It happens on regular basis. I’ve asked many times to let me agree an overdraft of just £5 or £10, so I can be ok with my payments. I’ve been refused.
If The Royal Bank of Scotland treats ALL customers this way - I am not surprised that Mr. Hester was so well “fed”. All those charges have to go somewhere. An absolute rip off!!!!
- Posted by Bea