Cameron should block RBS chief’s bonus

The Prime Minister has come under more pressure to prevent a bonus payment to Stephen Hester, Chief Executive of Royal Bank of Scotland (RBS).

Opposition Leader, Ed Miliband, has called on more restraints for bankers’ bonuses. In particular he focused on reward levels at RBS, which is 83 per cent owned by the taxpayer, where Hester is reported to be in line for a payout worth more than £1 million.

Commenting on BBC Radio 5 Live, Miliband said: “There is this big decision about the head of the Royal Bank of Scotland, Stephen Hester. I do not think he should be getting his bonus, you know the state still owns a share in RBS.”

However, Angela Knight, Head of the British Bankers’ Association, has hit out at these criticisms, suggesting that Hester and other banking chiefs have been unnecessarily targeted. She ascertains that he was brought in to rebuild RBS in the wake of the credit crisis and was not responsible for its downfall.

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Knight also highlighted that any reward given to Hester would be in the form of shares which could be clawed-back.