RBS chief's £9.6m incentive package

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

RBS won support from UK Financial Investments (UKFI), which controls the Government's more than 70% stake, for Mr Hester's salary and long-term bonus arrangements at a meeting last week.

UKFI is thought to have backed the move because of links to the bank's share price, which would have to pass a 70p threshold for the long-term bonus to be paid in full, by which point the taxpayer would have made millions in profits.

The stock is currently trading at around 37p after hefty share falls earlier this year in the wake of the Government bailout.

Mr Hester is in line for £1.2 million in salary, around £2 million in annual non-cash bonus payments and around £6.4 million of long-term share and stock option awards.

Long-term incentives would be based on a mix of targets and the RBS chief's options would be paid for 2009 but would only be able to be redeemed after three years.

But critics said the decision to tie the bonus mainly to the performance of the bank's shares could encourage risk.

Roger Lawson, of the RBS Shareholders Action Group, said: "It is absolutely outrageous that the Government does not use its power to bring the remuneration of bankers in these companies down to a reasonable level. Do they need to pay him this much to make him work harder?"

He said basing a bonus on share price could mean the focus would be put solely on this one measure at the cost of other strategies.

An RBS spokeswoman confirmed the deal had been agreed but was in the process of being finalised by the firm's board. "We have said consistently it is all linked to performance and will only be paid out if targets are met," she added.