Philip Hampton isn’t going to go so far as to say Stephen Hester earned it but he is going to just put it out there that other bank CEOs get paid a lot more. So if you think about it, Hester is barely making enough money to put food on the table. Relatively speaking.
RBS, 82-percent owned by the taxpayer, has faced criticism over a deferred bonus of 780,000 pounds ($1.2 million) that Hester is set to receive in March. But chairman Philip Hampton told lawmakers on Monday that Hester’s pay was modest by the industry’s standards. Hampton said Hester’s pay was well below the average in world banking. “Relative to other people doing these jobs his pay has been modest,” he told the Parliamentary Commission on Banking Standards. Hester, who receives a basic salary of 1.2 million pounds, chose to give up his bonus last year after a computer systems meltdown affected millions of customers. This year he was set to receive a share-based payment of 780,000 pounds deferred from three years ago. Some lawmakers have said Hester should not accept the payment after RBS was fined $612 million by British and U.S. authorities last week for its role in a global interest rate-rigging scandal.
RBS chairman says CEO’s pay is “modest” [Reuters]