Stephen Hester in line for £9.6 million remuneration package
Despite being majority owned by the UK government, on behalf of UK taxpayers, the Royal Bank of Scotland is today under pressure after agreeing a near £10 million remuneration package with chief executive Stephen Hester. The scheme will see Stephen Hester draw a salary of £1.2 million as well as potential annual bonuses of £2.4 million together with a share bonus package which could top £6 million.
While much of the bonus package is based upon the share price performance of Royal Bank of Scotland in the future, there is no doubt that if the UK economy does improve an increase in the share price from 36p to in excess of 70p (the bonus share checkpoint) would hardly be difficult. Despite severe criticism of the UK banking sector by the UK government this mammoth numeration package is catching the headlines for all the wrong reasons.
It is also worth remembering that Stephen Hester was awarded 10.4 million shares in Royal Bank of Scotland as compensation for loss of benefits when he left British Land. Quite why the UK taxpayer should be held responsible for lost benefits from former employment is very much open to debate.
Share this..
Related stories
Aldi announces reorganisation of UK division
Aldi, the discount supermarket retailer operating in the UK, has today announced the departure of the managing director of the UK and Irish division. Paul Foley is being replaced by the former managing director of the Austrian division as growth numbers in the UK start to slow. This has come as something of a surprise to many in the industry because the likes of Aldi and Lidl have made significant...
Read MoreWhy Do The QIA See Such Value In The UK?
While the Qatar Investment Authority (QIA) has been in the news of late, taking a near £2 billion stake in troubled Barclays Bank, it seems that where some see doom and gloom in the UK, the QIA sees investment opportunities. If the noises coming out of the Middle East are true the QIA is very much on course to invest literally billions of pounds into the UK over the coming weeks and months.
Read More
Ed Miliband calls for more powers for Ofgem
12/01/2015 Labour leader Ed Miliband believes Ofgem should be given more powers to force firms to cut gas and electricity bills in relation to the fall of wholesales prices. Ofgem does not currently have the power to force energy firms to reduce their prices. Ed Miliband has said he will fast track legislation on energy in a Commons debate next week. Oil prices have continued to fall in...
Read MoreGovernment introduces further air passenger taxes
The UK government has received a stinging rebuke from the airline industry as we approach 1 November, the day when the UK government introduces yet more passenger taxes. Under the new regime a family of four travelling to Kenya, Thailand or South Africa would be forced to pay an additional £200 on top of the price of their tickets due to the increased taxation.
Various changes to t...
G20 leaders set to tighten bank financing regulations
The forthcoming G20 meeting will see a flurry of promises and objectives announced with one of the major plans set to revolve around banking finance. There is a feeling that the financial regulations which cover the worldwide banking sector will be tightened to ensure that additional capital is held on the balance sheet as a buffer between the good times and the bad times.
If these...