Arab Today, arab today british bank boss turns down disputed bonus
Last Updated : GMT 14:47:19
Arab Today, arab today
Arab Today, arab today

British bank boss turns down disputed bonus

Arab Today, arab today

Arab Today, arab today British bank boss turns down disputed bonus

London - AFP

The chief executive of Britain\'s state-rescued Royal Bank of Scotland has bowed to intense political pressure and waived his annual bonus worth almost £1.0 million, the lender said on Monday. A bank spokesman confirmed that Stephen Hester has decided to forego a bonus of £963,000 ($1.5 million, 1.15 million euro) in shares that was awarded last week, on top of his £1.2-million salary. The huge award -- amid government calls for pay restraint, ongoing austerity and economic gloom -- sparked outrage among trade unions and the opposition Labour Party because RBS is 82-percent state-owned following a huge bailout. Labour vowed at the weekend to force a parliamentary vote to call for Hester to be stripped of the bonus, piling enormous political pressure on the lender, while the bank\'s chairman renounced his own bonus on Saturday. The government welcomed Hester\'s decision to spurn the payment, which was proving a major embarrassment for the Conservative-Liberal Democrat coalition that has pledged to crack down on excessive boardroom pay. \"This is a sensible and welcome decision that enables Stephen Hester to focus on the very important job he has got to do, namely to get back billions of pounds of taxpayers\' money that was put into RBS,\" finance minister George Osborne said. A spokeswoman for Prime Minister David Cameron stressed that it was \"a matter for individuals\" whether they would accept bonuses. \"The prime minister\'s view was that he wanted the bonuses to be lower. He always made it clear that it was a matter for Mr Hester whether he took that bonus or not, and that should remain the case. \"Reward for good performance is not in itself a bad thing,\" she added. The controversial issue will likely resurface however since Hester\'s future bonuses could potentially reach £6.4 million under the terms of a long-term incentive plan. John Hourican, the boss of RBS\' investment banking division, stands to earn a bonus of up to £4.5 million in shares later this year. Labour leader Ed Miliband, who had last week accused Cameron of a \"failure of leadership\" over Hester\'s bonus, called for more action. I think it was the threat of that parliamentary vote that led to change but I don\'t think this can be just a one-off episode,\" Miliband said Monday. \"If we don\'t deal with this systematically, if we don\'t deal with the issue of bankers\' bonuses in a proper way, this kind of thing will just reoccur.\" British taxpayers own the vast majority of RBS since it was bailed out at the height of the global financial crisis in 2008. Since then, it has slashed tens of thousands of jobs. Britain\'s biggest trade union Unite argued that the executive pay bonuses highlighted the \"hypocrisy\" of RBS. \"This gesture goes some way in acknowledging the hypocrisy of an organisation which has sacked over 21,000 staff, while still attempting to pay bumper bonuses to the bosses,\" said senior Unite official David Fleming. Hester\'s large shares-only bonus was less than half the £2 million that he was awarded a year earlier. RBS revealed Saturday that chairman Philip Hampton had waived a shares-only bonus worth £1.4 million.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today british bank boss turns down disputed bonus Arab Today, arab today british bank boss turns down disputed bonus

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday