RBS Pay Drama Continues

It would appear that UKFI (egged on by the Prime Minister) will be asking Stephen Hester, chief executive of Royal Bank of Scotland, to restrict his bonus for 2011 to no more than £ 1 million.

The board of RBS has been looking at paying a bonus in the region of £ 1.3 million to £ 1.5 million (based on the financial value of his share award).

One has to ask why the government feels that £ 1 million is the right amount.

Put simply, the following questions need to be asked and answered:-

• Did the CEO meet his performance criteria?;
• If so, what is he contractually entitled to?.

This is not the time to play short term tabloid politics.

Another example of the state intervening?