No-one I know thinks Stephen Hester, the boss of RBS, should get a £1million bonus for doing his job when many are facing pay freezes and cuts. Especially when the Bank is publically owned.
Mr Hester is right to turn down this bonus. My question is why was the offer of a bonus made in the first place?
I suppose you could argue that he has brought the bank back into profit in the last 9 months, to the tune of about £1 billion.
However, the share price for the bank is currently languishing at about 27p, representing a massive loss for the Government in terms of their shareholding, and a mile away from the heady days of RBS shares being worth over 6 quid!
Also, the bank is still failing to lend to small and medium sized businesses.
So why is it that the Board of RBS were awarding such a bonus in the first place? Surely when Alistar Darling as Majority Shareholder okayed the contract for Mr Hester he didn’t agree to him getting a bonus until every penny was paid back to the Tax payer?
Or perhaps he did, and all the false outrage is Labour and Ed Milliband re-writing history and jumping on another bandwagon. Perhaps Labour should remember that their shadow chancellor is Ed Balls, the City minister in a Labour Government who failed to regulate the City for 13 years, and Gordon Brown’s right hand man when he was chancellor.